As for your graduation ceremony, I agree. The teachers can't be writing prayers for the graduation ceremony, etc. There's no question about that. However, if a student is chosen to give a speech, it is that STUDENT'S speech. Last I checked, school's don't automatically endorse everything a student says - wouldn't that be a sorry state of affairs if we could sue schools because of the actions of a person who happened to be a student there. So, if a student is chosen to make a speech at the graduation (say they're the valedictorian) there's no violation of the seperation of church and state if they choose to say a prayer in their speech.
As for the first amendment giving you that right, you've certainly opened a can of worms here.
Quote:
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Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances.
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In other words, it also gives students the right to choose to pray when and where they please. The students are not agents of the government and are not subject to being required to censor their own religious thought. Teachers, sure, but students, no.
Not to mention that all the first amendment says is that congress can't make a law in support of or against a religion. One could argue (and I'm playing deil's advocate here) that there is nothing there to say that prayer shouldn't be allowed in school so long as there is no law specifically for or against it.