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If I were in your shoes, I'd probably take again -- especially if I were gunning for a top ten school. It sounds like you're reasonably confident that your score would go up, which would be helpful.

Schools take applicant's top score and definitely don't look down upon applicants who take the exam more than once --as a large number of applicants do so.
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Do you think I have a shot at Michigan? I am currently a resident and work in the area. I am not sure how much that matters though? I was also thiking about the part time program as well. Any thoughts on that?
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Yes you probably have a shot a Michigan. Being a resident doesn't really help you too much though. The part time program is a great way to go if you can handle both the b-school work and your professional work for a number of years. It is typically more difficult to manage a career change in a part time program however.

I've attached a discussion arguing both sides that you might find helpful.
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