The American Opportunity Credit, Student Loan Interest Deduction, and their affect on MAGI

I think I have this ironed out but I wanted to run it by the experts first.

Facts:
2011 Gross Pay: $85,000
2011 MAGI: $78,000.
2011 interest paid on undergraduate loans: $1,500.
In 2011 I went back to graduate school and paid $5,500 in tuition and fees plus $350 for books, which brings my total graduate expenses to $5,850.

So here are my questions.

• In regards to the American Opportunity Credit, how much of a credit would I get back? From what I understand, I would get a full credit for the first $2,000 and then 25% of the next $2,000. So that means that only $4,000 of my graduate school expenses are eligible for the deduction and that I would receive a credit $2,500, correct?

• Also in regards to the American Opportunity Credit, can this be used to lower my MAGI? For example, my MAGI is currently at $78,000 but if I deduct the amount from the AOC I would get down to $74,000. I ask because I would like to deduct my undergraduate student loan interest, but you’re not eligible for the deduction unless your MAGI is below $75,000.

• If the American Opportunity Credit doesn’t lower my MAGI below $75,000, is there anything I can do aside from starting a traditional IRA and contributing $3,000 to get down to $75,000?

Thank you.