well, speaking from experience, anything is possible.
I had a 2.68 GPA from a top notch private liberal arts school. I had a few bad life events right before college, which led me to make some choices that resulted in a lot of bad grades (I discussed these briefly in my application letter). My jr/sr GPA was around a 3.6, and my psych GPA was similar. My GRE's were over 1400, and I had some experience working in a military setting that was relevant to a new grant that my advisor received during the academic year that I applied. I took a few classes at a masters in counseling program as a non-degree student to demonstrate my ability to do grad work.
I applied to 8 PhD programs, and one master's. I got an interview (and was accepted) at one PhD program, and the master's program. My program was actually quite a good program, and led me to get a placement at a highly competitive, research oriented internship site, and a postdoc at a Research 1 university medical center. I'm now on faculty at a different research 1 institution (and trying to decide whether or not to quit that job, which was how I ended up here, after a google search that led me to something that sounded related... and I got sucked in reading all of these posts!).
Anyway, I just wanted to wish you luck, and to say that, truly, anything is possible!!!