I failed a couple of classes and have a D or two. Yes, it sucks and does impact grad school admissions, but no it won't completely kill them. Focus on doing well, and the rest will fall into place. Don't worry about things you can't control. Kick ass the rest of the way (ie. don't wind up with a 2.5 gpa), get a good job, crush the GMAT, and then worry about which schools to apply to.
http://www.mbavolunteers.org - check it out
GMAT Club Premium Membership - big benefits and savings