The test setting in ISI varies from program to program. I've heard/seen:
. the instructor tests their own group/student in class
. a different instructor tests the group/student in class
. a separate "test date" is held and students skate for one or more judges
. testing at an ISI event, like a competition
I can't find my rulebook right now, which is annoying me to no end. If you're going totest or compete in ISI, you have to get a rulebook.
Wait for the 2012 edition to come out in December. It's hard-copy only, but it's filled with valuable information that any ISI skater or coach needs to know. Afaik, they don't offer an electronic version.
This page explains one particular program's testing guidelines:
http://hutchfigureskating.org/board-members/hfsa-testing-policy/I think that the Pre-Alpha - Delta levels are skills-only. Freestyle 1-6 require a skills demonstration plus a program. I never heard of this before last year, but apparently many programs will not let the skater perform the program portion if they don't first pass the skills portion.
If you're testing more than one freestyle test at the same session, you can do a bare-bones minimum program for the lower-level test(s) and accept a low score in one of the judging categories. The highest-level freestyle test requires a full-blown program.
For Freestyle 7 and above, the skater must test before an approved, gold-level ISI judging panel at a special session, event or one of the ISI's National events. They used to allow a video to be submitted to HQ for Freestyle 7&8, but I don't know if that's still an option.