I've been thinking about your problem and I've come up with an idea or two. I don't know what your letter said in its entirety, but how do they know that their program is full? Several of us on this forum have sent deposits to schools as a "backup" or because we weren't sure which school we wanted to attend. I have only heard from 1 of 4 of the schools that I applied to, so naturally I sent my deposit in to the first acceptance. I might send 3 more deposits before I can figure out where I'm going. Does albany really think that 100% of the people who sent them $400 are coming in May? If albany is going to play these dirty games, then it seems like it should at least have a waitlist for accepted students so that when 20% of the people who submitted their depostis don't show up, they can call and accept all the people who were screwed the first time. Honestly, who are they going to call when their class is NOT full? I guarantee that there will be open spots in their program when classes start, how are they going to fill them? Did they give you a spot on any waiting list or anything? Telling you to "try again next year" just seems arrogant, like it was the only school that you applied to and you want to go there soooo bad next year (I'm sure that you DONT). Maybe consider sending your deposit in anyway and seeing what happens. For all they know, they crossed in the mail. Maybe that could get you a better shot at getting admitted. Having cash in (their) hands sometimes does crazy things, and I would hope to god that they wouldnt reject you AND keep your deposit. That would be insult to injury.
Best of Luck, we're all rooting for you,
Jd