Stick it out. I know 2 people who were let go from 121 programs and both were hired within a month or two at other regionals. Just be honest about what happened (they were) and you should have no problem. Especially in this market. If you really want to fly, don't give up. Like one of the earlier posters said, it's not the kiss of death it once was. I personally know someone who washed out at expressjet and now flys for another regional and loves life. MOral of the story: DON'T GIVE UP!
Bass