My 2 cents is to say do not give up till they make you go home. I have known many people over they years the have washed out of training with regionals and it has been a serious stick in thier spokes. From what i hear it is possible get hired again, but some regionals like skywest, asa, eagle and others will not interview you much less hire you if they know. This can be a very harsh and impersonal industry that way even if it is not your fault. I dont think 135 carriers care nearly as much these days though.
Call the PRIA people. I dont have the number but it has been posted.