Just keep at it, tsq! I have one friend who had his heart set on a particular publisher, and was crushed when they rejected him--but it was only his first rejection! I told him it was a bit ridiculous to consider giving up on the basis of a single rejection, and I still stand by that. In publishing, a rejection is usually not even an indictment of your work's quality. It's based on things like market forces, their existing pipeline, company resources, etc. All things you have no control over. So, don't get discouraged!
I am still working on getting my cover done. My friend who is doing it is a bit slow, but at least he's doing it exactly how I want it. I should probably get started on the next part, but there's this thing I want to write for my wife for Christmas and I should probably get on that.