Flock,
HornetBoy - (Then you'll always be able to look him in the eye.)
Pretty important in a flying school environment. The instructor is wrong in his method, everyone seems to agree, so I won't go on about that, but you really must explain to both the instructor and the chief that you will not be taking any more bookings with him and why - otherwise you will still feel uncomfortable visiting the club. If that doesn’t work, sod the whole club and move elsewhere, it’s your money.
On a side to that, I was in a very similar situation to you, when I had an instructor, who, when was having a bad day, made the students life hell. On one lesson, by 400ft I had had enough. He had criticised everything I had done from the start. When he asked why I hadn't done X, I explained very loudly that it was because I was learning to fly and he was supposed to be F*****G teaching me. 5 mins of complete silence ensued.
I spend many hours instruction with him after that, without problem, including my IMC and learnt a hell of a lot from an experienced and competent pilot. Sometimes people just need telling.
Hope you don't give it up though, it's well worth it in the end - and consider this - they wouldn't have let you go solo if you where a lost hope.
Regards,
LF