Thanks for your comments, notsogifted. You've explained a lot for me, and cleared up my confusion due to the course and name changes that I didn't know about.
The AP coordinator told me that last year's students took the Physics 2 test and did well, and all were encouraged to sign up for it this year (they are, of course, expected, though not required, to sign up for Physics 1). If you don't do well, do you have to submit the score? Can you submit only the scores you want to?
We weren't planning on Ivies or elites for DS, but we were hoping for a public university in our region. That may not happen now. We will consider the smaller technical/engineering universities, or the private colleges. Meanwhile, we are figuring out whether and how to replace that lost credit (he could take it 2nd semester next year, too, I suppose) and avoid having to retake English 3 as well.