If 85% of the class withdrew or failed, I think you have a good shot at getting back up to speed when it comes to that (and the first F will just be on your freshman record.. which to advisors is usually not incredibly huge). The TA stuff is good, the GPA could be a lot better (especially if you go to a lower end school). If you can rock bio and o-chem and make your MCAT good, and get published or something, I bet you could get a good shot at it and get into a low tier MD.
For DO your F's are gone and replaced by a B. For MD your grades will be rounded. Overall its hard to say what your position is. For DO your gpa is lower( albeit after the retaking your grade might go up significantly) then average for DO and for MD its pretty low ( The F's will hurt your BCPM). For MD you'll need to increase your gpa and get a high mcat. Research will be nice.
If 85% literally withdrew or failed then the you've got a shot for a grade appeal.