What's a mom to do?!

Refer to the picture of the sweet (but not so sweet!) boy on the last post as the subject for this blog. That adorable little boy got in so much trouble in primary yesterday that he had to sit in the back with a member of the bishopbric. As if that wasn't enough, Jace pinched him- several times! He was mad that he was in trouble and when Brother Barrington wouldn't let him go back to sitting with his friends, Jace pinched him! What kind of child does this and what does this say of his mother?! As a child (and even as an adult) I would've been so intimidated by someone like that, but not Jace. I came out of Relief Society (I had to teach again) to find Brother Barrington holding Jace (as Jace struggled to get away), waiting to tell me what had happened. I have never been so embarassed in my life- at least that I can remember. Needless to say, Jace got spanked by his dad, yelled at by his mom, but still I wonder if he gets it. He's very smart and can argue logically because a lot of the time he truly doesn't think he's wrong. I have no un-tried idea how to teach him respect, he feels a huge sense of entitlement to do whatever he wants, and I'm running out of creative punishments! What works with your kids?

Oh, and just so you know he's not ALL bad, Jace can also be my sweetest child. He will randomly wrap his arms around me and tell me he loves me to the moon, to the sun, to the mountains and to the stars, and then back again. He then will tell me that I'm a "cutie pie" and how pretty I am. Go figure?!