If it makes you feel better I graduated with a 2.1 GPA in engineering (Rounded up from 2.09). I went to a top 20 ranked University however.
I had a lot of project management experience though in internships and school. As others have said, some employers place more wieght on GPA, others on skills, and to a lesser extent, on university.
I received a few rejection letters for GPA, others didn't even ask. I was hired by a company that needed my project management skills.
What was interesting, a few years later (after graduation), I was reviewing bids for a project for my company. I had to analyze them and make a recommendation to my boss. One of the proposals was from a company (written by the same guy) that rejected me on GPA a few years earlier, (I kept all my rejection letters it helps me see trends).
I joked with my boss about it (and recommended the company they were good and competitive) and he put me as the project lead for them. I brought it up with the guy and he said they went through two recent graduates in the time span that passed since then.
I guess the moral of the story is things work out eventually. (Don't take this as getting crappy grades in school is good however, because it does limit opportunities - no questions there), but it is not the End of the World (tm). Keep your head up learn from mistakes and do better next time. Don't quit, or worse - give up.