My fear with vouchers is it would recreate seperate but equal and schools would discrimate out the kids with less chance of success
First off, it's not like kids with good grades would be worth more money than kids without. Each child is the same voucher amount. Also, the parents can choose whatever school they want. Lastly, school's are already "separate but equal" now. If you are ever in Birmingham, AL, let me know if you can see a difference between Birmingham city schools, and Hoover schools. Any at all.

or would accumulate so many as to pass on nothing of value.
Yep, because our schools right now aren't overcrowded. My wife's senior class had over 42 kids per class. The joys of a voucher system is that these kids would finally have a choice. As schools become overcrowded, other schools can be started to pick up parents who do not want the huge student load.

All these issues would be issues for the schools themselves. Any issue you would have with a school, would be an issue the school would have to deal with, or begin to lose kids to a competitor. The only fear I would have would be the government getting so involved that they basically kill off any chance for profitability. The only way it would ever work would be that all voucher systems would have to be the same across each state. We could not let the politicians create a system to play favorites.

I don't see extending welfare to our schools as a viable solution, you have more kids you get more money, who cares if you can in this case teach them.
Yep, because as we've seen in the past, people love to send their children where they basically get nothing. There are no parents ever getting PO boxes in cities to send thier children to schools in other districts because they have better schools. Yep, that never happens. And under our current system, there are absolutely NO schools that have lowered education levels. I mean, every school is equal right now, right? Schools in your rich districts are the same as inner city schools, right? Surely, our current system that only has to abide by the lowest standards to exist would be vastly superior to a system that must compete for students to exist. Yea. Government ran school are always superior to private schools, right?