Need help from future RN's about NCLEX!!!!

Okay I have a situation allnurses.com. I took the NCLEX three times and I have failed. So I decided to go at it again in 2010. However, I have since gotten into some criminal trouble in 2009 that was due to my part. the felony will be reduce to a misdemeanor on 11/2/10. I completed all of my probational items. Well, I proceeded to apply for licensure again in the state of Indiana. After disclosing my criminal background, I was summon for a hearing. I went to the hearing and was denied the opportunity to sit for the exam not b/c of my criminal hx bt b/c I am not competent enough to pass the exam? what is that!!!! they did not even give me a chance to prove myself. i was in the room and Im hearing all kinds of criminal acts and the panel awarded them their licensure or the opportunity to sit for the exam. I mean before coming into the hearing, I was taking the Kaplan course again, studying, doing remedial courses, and motivating myself to take the boards. My heart was crushed when the panel said i could not sit for the exam. I was expecting probation or something--not denial! What do I do? Do I give up or keep trying. They did say I could reapply but I think he was just saying that and meaning we will still deny you. What to do? What to do?