Yeppers Spaz, it is.
Is that the only school in your area that you can send him to? It would probably be worth it to see if there are any others (even private).
I just hope they don't start acting the same way. I know *my* 6yr old is quite an impressionable little fellow and "soaks up" the people he's around, I'm guessing that 8yr olds are more immune to it but probably over time they'd wear him down.
(Of course you could always check out homeschooling, hehe.)