Although, technically, an ECO cannot refuse an application based on a previous application, how much weight do previous applications have?

We were refused a visit visa, and our application was badly misinterpreted. For example, at the time we applied for a visit visa we had not met in person. However, in our naivety, we stated that we had met in the internet in 2004. The ECO misinterpreted this, and said "Considering you have met your sponsor once, in 2004, we cannot..."

I am quite categoric that we didn't say we met in person, we thought that meeting meant meeting in the sense of making aquantence, and specified the meeting was in the net.

I guess I am just at the nervous and waiting stage, where everything is in their hands whilst waiting for this fiancee visa. Would this work against us? If we had the right to appeal a VV refusal, we would have been able to clarify this.