Giftodd, wow. I fail to see how following directions well should count against your child? That is just silly. No matter how clear the instructions are, if she can't comprehend the concept she would not be able to follow the directions correctly!
It reminds me of a college exam I took once in which one of the questions was yes or no. So that is what I answered. But apparently the teacher expected an explanation as well, but did NOT ask for it on the exam. Of course I could have explained, but I didn't. The teacher noted that she had been looking for an explanation, but still had to mark the question correct since she hadn't actually asked for one!
And polarbear, I sincerely hope you reported that VP to the principal and the superintendent. The level of callousness in that comment is truly shocking.