well, before I had a hard time of accepting failures. I expect and demand success in most of things I do, and if things didn't turn out as I expected, I get really depressed and feel worthless.
Now I carry the philosophy of just doing your best, and don't care too much of the outcome. I'm no long dictated by the test score, the rating of annual performance review, or anything alike. I only have to answer to myself. As long as I've tried my best, I'm content. Agonizing over the past is waste of time and is not going to help you for the future.
About applying for school, I don't think school measure each credential with pre assigned weighting. I thinks it depends on each school, admission committee. Some of them may prefer scores, others may prefer recommendations, who knows. I believe as long as your whole package is within their comfort zone and not totally out of wack, they should admit you. Generally, school looking for certain characteristics from candidates, whether its ability of doing independent research, or ability of creative problem solving, or whatever. You have to exhibit such ability through one or more of your credential, through score, letter, statement, one way or another. If you can make your point and that's what they looking for, then you hit the jackpot.