Yes, it's very hard not to think about it ALL the time or to let it affect one's current work, obligations, etc. I'm in so much debt from my Master's (and from those application fees, transcript fees, etc.), the idea of not getting in anywhere makes the pit in my stomach get a little bigger each day.
'Course, it helps to hear from folks like you who are going through the same sort of thing. I do wish you the best of luck as you wait it out!