You should definitely reapply! I am about to enter into my 2nd year of PhD at a university I was previously rejected from. Although when I first applied I had experience of my field outside my degree, it wasn't enough to get me the place. And I had applied and was interviewed for several other projects around the same time, so I was juggling too many balls. After graduation I managed to get even more experience and 6 months later I applied again and got it. I think once you've graduated you have a better idea of what you want from a project and where your interests lie, and I think that comes across in the interview. Don't worry about prejudice, you will simply have to tick a box on the form saying you've applied previously in 200x and they'll see that with additional experience you are now even more determined to undertake the project. Good luck!

I found student counseling to be really helpful when I was in a low patch. Although I was offered drugs by my GP I didn't think that they would solve the problem of why I was sad. I would also recommend not only taking a break, but trying to incorporate something new into your week e.g. join a club where there are people other than the people you see at work. Hope you feel better soon!

I have had a similar experience. I contacted the supervisor 3 times while I was in my final year of undergrad degree discussing possible projects and grants that I could apply for. He said he would contact me if any project funding came up. However, I checked before the week before I went for another PhD interview and when I looked on my return he had advertised a project and I had just missed the deadline (it was advertised for a week!). I emailed him sending all the information I needed to apply anyway, and he just said that they were interviewing next week. I was furious because it was the project I had been waiting for and I had lots of work experience that was relevant. Luckily I got a place somewhere else and am happy here, but it really turned me against that one guy because I felt betrayed.