Hi mikebator,
I'm sorry to hear that Test Day did not turn out as well as hoped. Many GMATers spend 3 months (or more) of consistent study time before they hit their 'peak' scores, so it's likely that you just have not put in enough time and effort to earn a higher Score YET. To answer your immediate question: YES, this attempt does count towards your 8-attempt lifetime limit (even though you 'cancelled' this result). Since it sounds as though you're ready to put in significantly more study time, before we discuss how you might best proceed with your studies, it would help if you could provide a bit more information on how you've been studying and your goals:
1) What were your Quant and Verbal Scaled Scores on your Official GMAT?
2) How many hours have you typically studied each week?
3) On what dates (or approximate dates) did you take EACH of your CATs/mocks and how did you score on EACH (including the Quant and Verbal Scaled Scores for EACH)?
4) When are you planning to apply to Business School and what Schools are you planning to apply to?
If you took your GMAT at a Test Center, then you might also choose to purchase the Enhanced Score Report. While the ESR doesn’t provide a lot of information, there are usually a few data points that we can use to define what went wrong on Test Day (and what you should work on to score higher). If you purchase the ESR, then I'll be happy to analyze it for you.
GMAT assassins aren't born, they're made,
Rich