Update:
Went to Open House and did a quick chat with the teachers. The social studies teacher stated that she expects good spelling, but will redo the grade if the student writes the misspelled word correctly 5 times. DD can't spell worth a flip (just mentioned it in another post about dysgraphia)so my stomach sank. She sure can spell correctly if she writes her papers online which is another reason to do the work on a computer!!! She has an editor's eye for spelling if it's not her handwriting. Also, I know I wasn't supposed to bring up her 504 per your advice, but no parent was around and the teacher stated something about it so I asked how it was going in class. Next thing I hear from the teacher is that she had read the accommodations, but she understood them to mean that all the work was being done by the parents. What?? I said she must not have received all the info, and then the teacher gave me the big "huh?" look.
Good thing you all gave me lots of good advice.
Question - if she is supposed to do her work on a computer wouldn't that cover the spelling problem?