Hi Anonphd,
Definitely follow the regulations to the letter. Although this is related to employment rather than a PhD, a colleague of mine was told that his contract wasn't going to be renewed. However, the university didn't follow the correct procedure and the union managed to exploit this with the result that my colleague got his job back.
Get the student union involved and make sure that you follow all the procedures because it just might make the difference.
I can imagine how devasted you must be but keep trying and the best of luck.
(up)