Panzer, I don't have time to post a detailed reply, but I'm sorry you had such a frustrating and disappointing meeting with the school. One thing I'm curious about - you mentioned in another thread earlier this spring a few things that might be related to vision - have you had his vision checked out? Has he seen a DO? I can't help but wonder if the picture memory score *might* be related to vision - a few of the other things you mentioned in this post as sensory issues could potentially be related to vision.
I hope you're able to move - it sounds like a move would be a good thing regardless of the school situation.
I would also keep searching for an advocate - I can't imagine having to move forward in your position without having some kind of *local* advice, as well as a strong unbiased knowledgable person that you can bring with you to these meetings. An advocate would have brought up the absence of the gifted person specified as attending immediately, and the meeting would have been called off.
I know this may sound counter-intuitive, but one place you might find the name of an advocate's group by looking at SPED resources on a neighboring school district's website (I'm guessing your school district isn't up to speed enough to include this info).
Hang in there!
polarbear
