M.M.
He is only 7. He might be embarrased or maybe he is getting picked on because mommy has stepped in. Tell him you love him every day and hopefully your husband is saying things like "Do not speak to your mother that way!"
About the school, call the principal, set up a meeting and tell him/her that you will be contacting the superintendants' office about all these issues. You can have the teacher present when you speak to the principal or not.
Document everything. Every note, every phone call, every time he comes home angry, upset , happy.
In NC they are not tested until the end of 2nd grade. If your child truly needs to be in a higher level class then use the words least restrictive environment. In 1st grade he is being stifled and cannot reach his full potential because the environment for all first graders is not conducive for his learning.
If he is immature or unorganized consider what you will be setting him up for in later years.
Since you are going back to Texas have all his schoolwork documented. THey may or may not let you skip him next year. THey may want to watch him for a year. That is OK, only if the teacher is willing to give him challenging schoolwork and not just more busy work.
YOu are your son's only real advocate. Be loud, be proud and let them know you are not to be messed with when it comes to his education.
By the way, in our family the "No Child Left Behind Act" is known as the "No Child Gets Ahead Act". Schools are not very willing to just move a gifted child, nor are they all that happpy to deal with the mommies.
Good Luck