Teacher threatened my daughter

    Thursday was the 1st grade music program. My mom went and
    dropped my daughter off in the classroom and was suprised
    when the teacher called my daughter by the wrong name.
    She has done this before and has even sent notes home with
    the wrong name on it. My mom also noticed that her desk
    was at the front of the classroom, facing and against the
    wall underneath the whiteboard. There is no way for my
    daughter to even see the board from this location. After
    the performance, my sister, daughter and I went to the
    class to see for ourselves. I asked my daughter why her
    desk was against the wall. She said 'that teacher got mad
    because my pencil box kept falling out of my desk.' I
    went and looked at her desk and as soon as I moved the
    chair the box fell out again. There were so many books in
    there that there was no room for the box. I cleaned out
    the desk and fit everything back inside. My daughter then
    decided to go to the bathroom. After a few minutes, the
    teacher walks in. I am assuming it was the teacher
    because I had never met her and she neither introduced
    herself or asked my identity. When I asked why the desk
    was in the front of the room, she said 'I could have
    strung that kid up today.' She then went on an spoke
    about all the problem she had with my daughter that day
    and wanted to know if I had ever considered treating her
    for ADD. She then went on and told me that she had the
    last straw when my daughter dropped her pencil for the
    third time that day and got angry and moved her to the
    front. She said, 'I must have scared her because she
    started to behave.' I was so offended by her comments
    that I could not hold a conversation. The next morning, I
    spoke to the school counselor about my concerns and she
    said that she would talk to the teacher. After talking to
    people at work, who happen to be psycologists, they
    insisted that I call the prinicpal immediately and tell
    her. After leaving a message two hours earlier, the
    principal calls back. She listens to my complaints and
    asks me what I want done about it. I tell her that I want
    it to stop and that no student should ever have a teacher
    talk about them that way. I told her that I wanted to
    bring it to her attention so in case this happens again, I
    will take this matter as far as it needs to go. My dad
    then decides to go and observe the class at the end of the
    day, figuring that if a child is going to misbehave Friday
    afternoon would probably be a good time to witness it. He
    stood outside in the hall listening to the conversations
    while the teacher made the students clean their desks. He
    peeked around the corner and saw that my daughter had
    already cleaned her desk and was sitting quietly with a
    look on her face that broke his heart. She looked as
    though all she wanted was for someone to pay attention to
    her and notice that she was done already. No one said a
    word, since she was still at the front of the classroom.
    The principal told my dad that is was at MY request that
    she be moved to the front of the room. So, now the
    teacher and/or the principal is lying and I just don't
    know what to do! Please help me, am I overreacting, or do
    I need to react more. What should I do? Conversations
    with the school just don't seem to help.