Yes, I think I am seeing in your descriptions what the doctor must mean in terms of ds running into issues in school. So far so good, but it will be really hard on ds to go from straight A's because in part he has a really understanding and cool teacher who 'gets' him, to a situation where everytime he forgets something it's a big horrible deal (1st grade, 2nd grade).

We are focusing on the social skills right now, but I don't want to ignore the anxiety which I think springs from several different things. I am reading 'The Anxiety Cure for kids', it is a guide for parents and uses a metaphor of a dragon (anxiety) and a wizard which overcomes this dragon - only read a bit so far but it seems good so far.

Benny - I would absolutely make a stink about the room assignments- they should be alphabetical or something that is completely NOT related to personality/preference of the kids.
If it's a large group probably at least one child will end up not showing so that might help, but I would not count on that to happen.