Sorry you got a bum instructor. I'm sure you'll both learn something from the experience. Failing 2 rides is not a big deal and I wouldn't worry at all about it (unless the examiner makes you pay twice!). I'm guessing since you didn't fail on the maneuvers you don't have to do them again? When it comes time to re-learn them if you go for your CFI, etc, you'll want to get a copy of the Airplane Flying Handbook published by our friends at the FAA. It really is a good book. Get your hands on a copy of the PTS, too. It walks through all of the maneuvers...I found it very helpful getting ready for my CFI ride.
Good luck on the retake!