I have to speak up again, because I really disagree with the name-dropping thing.  I did put specific names in my cover letters.  I did it on purpose, because i made sure to have great conversation with the people who I "name-dropped" so that if the person was asked about me they would remember and have something good to say (at least that is what I hoped).  I got 6 offers during this recruiting season, and two were from big four firms that recruit at my school (I'm on the west coast and PWC and E&Y don't recruit at my college).  Please don't take this as me trying to brag; I wanted to emphasize that because I name dropped in 5 out of 6 of my cover letters and I still got offers from those firms.  Name dropping is not going to get you kicked out of the applicant pool unless you had a terrible conversation with the person you name dropped and they didn't have anything good to say about you.

I do think the internships are more competitive, but there are still a lot of people who don't like to do the winter internships because it sets them back on their college plans (if they are college students).  I would highly recommend doing a winter/spring internship because not as many people will be trying for those positions, and at most places, that is the time you will actually get to do some real work.  I know several people who did summer internships that didn't feel like it was a good experience because it wasn't busy season. 

Of course, like I said, I am on the west side of the country, so maybe on the east everything's different.  But do keep in mind that if you made it to a second round interview you did a great job.  And you still have a chance with them in the future, so keep trying!!

Potatogun - I really hope what I wrote didn't sound offensive or rude.  I definitely didn't mean for it to sound that way.  This really just goes to show how subjective the whole process is!  The whole interview process!  I have heard SO many conflicting suggestions this semester!  It really all depends on how you come across to a complete stranger, and how on earth are you supposed to know how to impress a complete stranger? 

ddlszxcv - Keep at it!  Life has a funny way of working itself out.  I am positive that you will get that great job if you are courageous enough to keep going for it!