Well, I completely understand how you feel. I had my oldest in a Kindercare until she was about 18 months. One day, I went in there (I frequently stopped in during the day since I worked close enough by to do that over lunch), and she was in her crib SCREAMING. All the other kids (4 of them, there were 2 adults) were playing nicely, and nobody was giving her any attention. I picked her up and she calmed down almost instantly. I asked them what happened. They said, "She's tired." I asked why she was left in her crib to cry, and got no answer. I put her with the other kids and she began playing. I went to the director and had MANY words. There was no reason for that. They explained to her that she was teething, they gave her tylenol, and it hadn't kicked in yet, that nothing they were doing was helping, so they put her in the crib. I told them that was completley unacceptable under the circumstances. They weren't dealing with having a snack or lunch, there were only 4 kids and they were playing happily. There was no reason for her to be left in a crib to cry because her teeth hurt or becuase she was "tired".
Fortunatley, very soon after that, we worked something out with our neighbor to watch her, and she's been happy as a clam since. Our oldest is now almost 6, and our youngest is 3 and has never known a "typical" daycare setting.
Anyway - suffice to say I understand your concerns. I think it's commendable that you've turned in your 2 weeks so you can take care of your grandson. My sister stayed home until my nephews could "speak for themselves" and tell her what was going on.
I think their explanation is *somewhat* reasonable - I don't think they should have let him "cry it out" in the chair, but understand why if he had fallen asleep why they would have tried to put him in a quiet corner. But then they said something about the Halloween decorations. Sometimes you have to do what you can do to keep the kids happy and entertained.
Sorry couldn't be more helpful...