Yeah, it really, really fucking sucks when you think you're a good fit for a job and they end up getting someone with a lot more experience. I kept applying for entry-level jobs and was told more than once that they wanted someone with experience under their belt. One place even told me that they were going to likely go with someone with 6+ years experience AFTER I had been talking with them for an hour or so and they showed me the workplace/had me meet people. What is the point in wasting time like that?
Still wasn't as bad as an interview I went to in Japan (which was in Tokyo, so I had to pay for a train ticket and get a hotel room to make it there-- that's like $300 spent just to go) where the president came in and told me he had no idea why I was there since they only hired people with 5-10 of experience and that I was just wasting his time; he had to go "talk to someone important" and left me to talk with an employee there, who basically convinced me not to bother with that job path at all.
I got lucky with the job I found: My cousin's roommate just so happens to work there and just so happens to be in a position where he can easily get someone an interview with them. I had even applied to them a week before he got my resume, and they hadn't responded. None of the recruiters or job search sites I joined helped much; I got almost all my previous interviews from Craigslist ads or from my school's Alumni site.
