We had the same experience Bronxmom! In our meeting when I mentioned that we'd just homeschool if we couldn't get something worked out, you could hear a pin drop. DD6's Kindergarten teacher looked at me like I announced I was selling DD's kidneys to the highest bidder!

We eventually moved to a place where the girls are at school half time and proceed in their own program for half the day, independent of the brick and mortar school. We've had some unfortunate issues with one of the teachers, but overall, it works well.

Sounds like you have a great plan, good luck.