Ahh a fellow Michigander, why didn't you say so. Actually my post was refering to the general ranking system that determines who gets accepted. There's no special list for "wait-listed" applicants. Sounds to me like your application was pretty solid, but that incident with the letter of recomendation hurt you pretty bad. Tough love, I guess, what are you gonna do? By the time you got that January interview their is only around 30 spots or less left, the applicant pool is at its heights and those three criteria I listed become critical.
My situation you ask?
Actually it was somewhat similar to your own. In a nutshell, I applied late in the first place in combination with a late letter of recomendation (my recomender forgot to send it). My application was finally completed on the last possible day of the application period deadline (how's that for cutting it close). There's basically no spots left by the time they reviewed my app. I didn't even get an interview let alone wait-listed (despite fairly strong GPA and MCAT scores). I was told later that I was 8th place on the list of remaining applicants to recieve an invitation to interview. Furthermore, that other applicants where much stronger in the criteria I listed then I was. This conclusion was reached because of my lackluster essay, which barely answered any of those criteria questions. I spent the summer retooling my essay, and strengthening my application through more volunteer work, shadowing etc.. Reapplied in June and sent my secondary in ASAP. I got one of the very first interviews of the current application period and was accepted about a week after that. Well that's my story. I hope it offers some inspiration to you.