Hi Rohan,
As Wayne said, one can't make an appeal if the application is returned and you can re-apply only in July 2011.
I would advice everyone concerned (with BDs not encashed) to take-up French classes and if ,God forbid, anyone gets a rejection, Quebec would be the next best option (if eligible). The total processing time for CSQ+VO is somewhat same as FSW (PER/AOR+VO) and one doesn't need to be highly proficient in French, just basic knowledge will do. This is a win-win option. If (& I hope) you get your PER, you can claim additional points for language ability that helps in final decision at VO. Moreover, French skills will improve the job prospects in Canada.
Can evaluate your chances for Quebec here --> http://www.immigration-quebec.gouv.qc.ca/en/immigrate-settle/permanent-workers/epi.html
Rohan, FSW 2 would require you to get a job offer from Canada. TBH.. You'll be fortunate if you get it while being in India without any assistance. Some agents charge between USD 8k to 10k to arrange the AEO approved job offer. But it works !!
So with all said and done, most of us share similar concerns as you do (irrespective of BD status) but there is always a door open filled with options .. just need to pick the right one.
Best of Luck !