I've never dealt with this but it appears the uscis puts a lot of value in the requirement. Here is their page on the tests along with a lot of material to help the person become adequate in the language.

http://www.uscis.gov/citizenship/lea...s-english-test


The fact it appears one interviewer was attempting to aid in cheating on the test doesn't make the next interviewer that would not play that game a bad person. Just the opposite.