Pam,
This post will help a bit in seeing that picturing the word spelled correctly in the mind is "as important" as striving to spell the particular missed word correctly. Link:
viewtopic.php?f=6&t=10388
With this in mind, I'll also share that learning to correctly capture a mental image of the word in one's mind is a skill that takes time for those who are not natural spellers. So, I wouldn't advocate carrying the words that have been spelled incorrectly over to the next week.
Instead, I would follow the plans continuing all year to work on the skill of correctly capturing the image of a word in one's mind, which is the skill that will eventually lead to correct spelling. If the child has a roadblock with a word at one point in time, practicing that word over and over (while still making errors with the spelling of that word off and on) can actually leave the child with an incorrect picture of that word imprinted on the child's mental blackboard. Instead, stepping away from the word, to return to it later after more exercises in picturing other words correctly, allows the child to work on the skills needed to see the word correctly when she returns to it later.
In the meantime, be diligent with the child's copywork, making sure the child is not copying the words incorrectly from daily copywork. This will reinforce the correct spelling of the word from a correctly written model (reinforcing the visualizing of the word spelled correctly). As you can see the CM approach is much different from drilling an incorrectly spelled word, or from doing many repetitions of copying the same word over and over. The mental picturing is the focus.
If your daughter has not been through the words in List 1, you may wish to consider doing List 1 from start to finish all year, and then moving on to List 2 next year. I share this because of the exercises that go along with the words. Or, if you feel your daughter is ready for List 2, then do that list instead. But, I wouldn't advocate jumping back and forth between the two lists, seeking to find the words she doesn't know. This is because the process is as important as the product in this case.

So, focusing on finding the misspelled words, rather than focusing on the process of mentally picturing the words correctly, puts the cart before the horse.
Blessings,
Carrie