Awful. Just awful. Language - including writing - is about conveying information. Capitalization will help with that eventually, but your child's teacher is way off base in saying ANY writing your child is doing is "wrong," especially with respect to how she writes her name. Can you read her name? Then it's just perfect for now. She is conveying the information. I would not go back to that school at all.
A child should be able to write their name any way they want. Every person eventually develops their own signature. This mania for precise copying and uniformity is worse than useless, especially at this stage of learning.
I get very worked up about this because my DS had a charming "signature" he developed as he taught himself to write in preschool. Entering K, he was told that he could not write his name that way. Let me be clear - it was perfectly legible. It just included a couple of artistically embellished letters. After being humiliated and told over and over that his writing was wrong - and being sent home with his name in dot-to-dot letters he was to trace over 10 times EVERY NIGHT in the ironically named Handwriting Without Tears font (which I did not make him do), he abandoned his charming signature and also decided that he could not write at all. He won't even try any more.
Don't let this happen to your child. Leave that school.
