A child with a 504 plan in a special education room sounds quite intensive for services, however, I am not sure if this is illegal.  I do not know which state you reside, but I am fairly confident that most states have a legal services association that can guide you for free or at a minimal cost (e.g. Legal Aid).  You may wish to contact your local library as they often have a wealth of general special education information and contact information for people who may be able to assist you.
 
Also, you can ask to reconvene your child's special education multi-disciplinary team and request a copy of 504 statutes in writing to take with you.  Then you can read them and if you wish, consult with someone who understands and can explain to you legal educational documentation.  
 
Lastly, please ask to observe within the classroom.  You may see that your child's needs are being met quite well and not at all what you imagine.  Keep in mind that a child who is LD (Learning Disabled) is not cognitively impaired.  By definition LD means that a child has average or above average cognitive skills with processing deficits and a statistically significant discrepancy between cognition and academic skills.  You may be surprised to find out that the LD children in the room are very bright!
 
Good luck and I have placed some resources below that perhaps may be able to assist you.
 
Louise Masin Sattler, NCSP
Nationally Certified School Psychologist
Owner of Signing Families
http://www.SigningFamilies.com