Thanks all for the helpful advice and reassurance.
sunnydelight - I get what you're saying about friendhsips and extras and moving her yet again. Friendships would, hopefully, happen whichever school she attends as a stop-gap and, quite frankly, she could have 100 times extra activities with the money we'd save. I don't want private education for my DCs as I think it's ridiculous to pay the extra money when the borough is full of outstanding and good schools.
Bluearmy - we haven't seen the school yet as only just found out yesterday and we're 5 miles away, so not even word of mouth. The reason my DH was in a panic is that the Ofsted (done in June 2010) highlights the issue of bullying. I don't know how often that is mentioned in an Ofsted report but that was quite scary.
CustardCake - totally agree about having an end in sight and only doing it for a few terms and only if absolutely needed. I had no idea about the year 3 change in class size, so that is great news. New house would be only 200 metres away, hopefully that's short enough. There are 6 others on the waiting list at the moment, though.
prH47bridge - thanks and well done for doing something about this. I suppose you've met lots of parents who just grumble and moan for a while, then thank whoever when their child gets in/is no longer interested etc and get on with their lives. Which is fine, of course, only so many battles you can fight but good on you for keeping it going.