Can I Really Homeschool A High School Student?

The situation with my daughter has reached a point where a decision has to be made. Her English teacher from last year (and again this year) has pretty much stated that my daughter failed because she didn't turn in her work. Of course I know that isn't true because I helped her with her work. My daughter has no history of not turning in her work, and she fought really hard last year to do well with this teacher.
I know part of the responsibility rests on me. I should have been more aware of what was happening with my daughter. All I can say is that with being so sick, and then the surgery, I didn't confront this teacher the way I should.
So now my husband, daughter, and I have some tough decisions to make. We've been praying and we honestly feel that, if the school can not rectify this situation satisfactorily, then my daughter will be brought home. They have set up the school policies so that this teacher has a lot of power. That is very unfortunate for the large percentage of students she failed and left with no way to make up the class.
I get very nervous when I think about homeschooling a sixteen year old junior in high school. I did get a little comfort from the local home school teacher here in town. She is more than willing to loan me curriculum and help my daughter in classes in which she may need help. When I told this wonderful lady that my husband was on layoff and I couldn't afford to pay her, she just laughed and told me not to worry about money. "Don't let money stop you from homeschooling your daughter." She told me .
Then this morning my older daughter was on the college website that she has been interested in attending next year. She pulled up a whole section on this college's admission policies on homeschooling. With a transcript and SAT scores, they gladly accept home school students.
I keep praying for God to make it plain what we should do. If I am to home school my high school daughter, then I want a neon sign or something from God saying " DO IT!" So far, it kind of feels like that is the direction we are being led. I mean, the school's mess ups and unwillingness to admit fault and determination to not work with us is a big sign. Then there is the fact that our curriculum is being handed to us for free, with help if needed. Throw in the fact that many of the colleges are seeking home school students and... signs are looking pretty neon to me.
Still, my stomach is beyond butterflies. Jet airplanes are roaring in there. So many questions come up in my mind. What if this doesn't work out? What if it's too hard? What if Tasha hates it? I mean, she says she wants this, but she's sixteen. What if she starts it and hates it? It's not like she can just go back to school without having to make up time. The whole point of this is to help her not to hurt her. And, being sixteen, should I really trust her instincts?
So, more prayer has to happen. More research is being done. I guess it's time to get on some home school blogs of those that are teaching high schoolers. Before I began homeschooling my 9 year old last year I used blogs to get so much knowledge and reassurance.
Decisions must be made in the next few days.