It's probably one of the worst things that's happened to me. Tried to explain it to my family that it's kind of like getting a B and not an A; and I only accept As

:-([/quote]

It is a bit more than just an A and B though isn't it. It is like an A gets you straight on to that academic pathway, while B means you have to go a longer more winding route and may not get to the destination in the same time-or with the same people. Be easy on yourself while you are on that rollercoaster.
In the long run, who you are, what you have learned and what you do with it are far more important things than the green light from your university crew. Hope things get better soon...

Nichola, I think that there are a couple of first steps you can take. Firstly, I would do like TT suggested and check whether there is a deadline for complaining and give notice to your faculty dean of research students that you intend to make a formal complaint about your supervision based on your examiners' comments about the project and supervision.That will get people worried and worried is good in your situation. Check too whether you can appeal on the grounds of inadequate supervision - I think TT and I are right in suspecting that might be a blind alley for you and that it's the complaints angle you need to pursue, but get advice from someone who knows your university's system as they do vary. Then unless the deadline makes it impossible, I'd wait to get the examiners' report and fingers crossed they've done the groundwork for you in raising the impossibility of the project and thus unacceptable supervision standards and your formal complaint can basically quote your examiners' report. Good luck and if you're unsure what anything in the procedures means, ask on here as there are a few people who know their way around uni procedures and can help you. Just follow the procedure and keep yourself in the righteous position and I suspect you can make a lot of people sweat over this if the examiners report says what they said to you.

Solid advice Bewildered. I'll add that Universities don't like embassing situations and they'll take the route that'll get them out of the proverbial (s***) with as few problems as possible. Normally they close ranks and colleagues play the same tune, however, in your case it's not possible due to the actions of the examiners. They'll therefore look for another route out and this could play in your favour.

If the project was as impossible as the above suggests and this was clear before they took someone, the examiner's report could in theory be used to raise a compensation claim against the University. I say 'could', however, that's still a long way down the road.

I've read all the comments and I agree with most of them. You can't appeal an academic judgment but you can appeal on procedural grounds, for example of you feel that the supervision was inadequate, that the college didn't offer the facilities needed etc. However, there's a good chance that academics will close ranks as people on the thread have already stated.
I myself am in a very similar position to you, soon to submit work for this MPhil degree instead of the PhD which was stolen from me because of a terrible supervisor (subsequently sacked). But , here's the thing for a fact, if you want a career in academia, it's far from over.
An MPhil is a serious body of work and not to be just dismissed. Many colleges specifically offer MPhil degrees for those who only want the professional skills of the academic, what's more is demonstrates a serious level of commitment, ability to conduct independent research and does look favorably if you want to apply for a PhD at a later date. You won't be able to do the PhD in a similar area, there's ethical problems with that. It looks bleak at the minute but there area ,loads of universities out there that are interested in you.
Your family are primarily concerned with your happiness and won't like to see you down. Its nothing to do with your lack of qualifications.