A suprise party apparently wasn't quite enough to say farewell to Nancy Sheridan, who has beem a first grade teacher at Camelot Elementary School in Annandale for the past four years. So just before she and her husband Mike moved to North Carolina recently, friends, neighbors and students gave her a surprise parade.

When people heard Sheridan was leaving, the began suggesting dinners, picnics and the like. But neighbor Linda SPooner said, "You just can't repay magic with meat and potatoes." So Nancy Sheridan was carried off to her parade in a bestreamered convertible bearing a sign which read, "Our Fair Lady," and the streets of the Camelot subdivision were filled with fire engines boasting signs that read "She Lit A Fire Under Us," followed by nearly 100 youthful paraders and a couple of dozen adults who hoisted poles with red tissue flames along the 4 1/2-block parade route.

Music was provided by a group dressed as Indians, who played "She's A Jolly Good Fellow" on kazoos. Sheridan's first graders marched along in paper folded hats, behind a banner that said "Sayonara." They had just finished studying Japan. Other students wore paper mache headmasks of fictitious characters, to whom they had been introduced through their teacher's dramatic talent.

The object of all their good wishes, Nancy Sheridan is a recent recipient of the 1977 Valley Forge Freedoms Foundation teacher's medal, holder of a masters degree in children's dramatics, and also was coordinator for Camelot Elementary School's third and fourth grade program for gifted and talented students.