For nine years she led a double life. Most people in Henniker, N.H., knew Karen Morse as a spirited student and athlete. What they did not know was that she could not read, and that she passed from grade to grade through a sophisticated system of cheating. She made it as far as ninth grade before she was caught. "I did a lot of taking other kids' papers, erasing their names--just cheating, mostly. I really didn't think about it. It was a question of survival," said Karen, now 20 and a college freshman. In ninth grade, Karen was diagnosed as having a learning disability. Her problem actually was dyslexia, a reading dysfunction, and that wasn't identified until Karen was a senior. Henniker High School agreed to pay Karen's tuition to a special school, but refused to pay for a second year. Now, Karen's parents are suing, and the dispute has split their small town. "The feeling in town now is that the school board made a gesture, went beyond their obligation, legal or otherwise, and is now being burned," said Supt. Cynthia Mowles. Karen says that the bitter legal fight has been a lesson to her: "I've lost faith in the judicial system," she said. "It's not what they taught us in school."