Fuqua,
First, if you think you can get a 700 on the GMAT, I recommend that you at least apply to Emory. My overall opinion is to go to the very best school that you can. There are so many parts to MBA admissions, don't let your friend's experience discourage you from at least making a strong attempt. Emory is a great school and although it's more expensive, it may be that your ROI from going to Emory would be higher than it would be if you went to Tech. There are many more factors in MBA admissions than just GPA and GMAT. The type of leadership experiences you have had and how you convey them is another element (essays!).
That said, if you end up at Tech and you intend to live in Georgia, the Tech brand is a great one to have here (as a general brand).
Andrea,
I have to be honest and say that if you don't intend to stay in Atlanta, at least for a significant period of time after your MBA (so that you can gain some solid work experience before moving on), I think the Georgia Tech MBA will not be as valuable as an MBA from a higher-ranked school like Emory. If you plan to stay in Atlanta, then yes, I think a Tech MBA will suffice. But if you want more flexibility and options, then I'd recommend a higher ranked program. I'm not saying that you can't succeed with an MBA from Tech, but its brand is just not that well known from the b-school standpoint.
As far as what recruiters think when they see an MBA on a resume from an unknown program... First, if the job they are hiring for requires an MBA, then it's a good thing to have the MBA. Second, the school also lets recruiters know what type of salary will be required. So an MBA is valuable. However, a higher ranked MBA can, and often does, garner a higher salary. I could give you numerous anecdotal examples of this.
I am in the process of organizing a GMAT study group in the Atlanta area. If you are interested or if you know anyone who would be interested, please contact me. This group would be open to anyone, and my hope is really just to provide an open, collaborative learning environment for those studying for the GMAT. The format of the group would be up to participants - my only role is to provide a venue (a quiet meeting room at a local coffee shop) and put everyone in touch with one another. You can email me at:
info@attain-group.com
Also, feel free to email me with general MBA admissions questions.