Hey man!
Festivals are tricky! You have a million ways to get screwed... it's best never to expect anything from them. Politics, people problems... you could have the best script in the world, and the festival will pass it up for one about Cyborgs on the basis that a cyborg movie just came out to great box office figures... or it was David Duchovney's son who wrote the script... some festivals are so hungry for publicity...
But, hey, for your first time, expect a million rejections. The business is all about hearing "NO" a million times, and picking yourself up a million times. Learn from each experience, get back up, and take it to the next level. I bet every person here has heard "NO" so many times they could write a "No-ography" so long it would... well, it would be pretty darn lenghty.
The whole point is.. who cares? They said no? That's thier problem. NEXT!
I'm starting to hang rejection letters on the wall next to all my termination/lay-off/warning letters from work. It's nice to see the failure building up, and when the success comes, you can go over, tear down all those papers, bring them out to the balcony, pull down your pants, and... well... you can do what you like to those papers, but you have to understand that people only want what they want when they want it. Next time, dude, next time.
Revise the script again, then throw it a million more places. Do that a million more times, and something might happen. That's the way it seems to work in this crazy, nutzo world.