Start practicing picc! I assume she means you'll be sightreading, so get as comfortable with the instrument as possible.

Don't worry. Just do your best.

With the piccolo make a good effort to practice it everyday, work on your tone, and play through every piece of music you have available (visit the library!). You want TONE TONE TONE. If you play the piccolo beautifully throughout its range, but your reading is a little bad it will be much better than the clarinetist screaching through music with perfect rhythm.

Do practice!

But ALWAYS play your flute for at least 10 minutes, first. You have to avoid scrunching up your embouchure muscles, which will cause a tight, screechy sound. Playing flute first- starting in the middle or low register, and working up to the flute's high register before playing the piccolo, will keep you free-blowing. Pinching the embouchure is a sure sign of too-tight muscles and an improper warm-up.

DO lots of work on tone. Consistent work on scales will also improve your sight reading.

Good luck, and let us know what happens!

I disagree slightly with the idea that you must play flute before picc. I'm sure for some people that really helps, but there's really no difference for me when I pick up a picc whether I've played flute first or not. To me, it just takes up time that doesn't really need to be spent on flute, and increases your reliance on playing flute before you play picc, which in my mind is not a good thing, as you will not always have the opportunity to play through things on flute before you play picc. The best advice I can give is to try it both ways, and whatever works best for you is what you should do. I don't play flute before I play picc most of the time, but some do.