bigmarco,
That's a terrible result. I'm really very so sorry to hear that.

The important thing now is to clear your mind and consider the next step(s)

If not already given the UKBA will give full written reasons for the refusal and will also give full details on how to appeal the refusal.

You do have some options:-

1. Respond with a letter requesting reconsideration of the decision. This should be done asap provided you can clearly point to the errors made by the ECO in understanding fully your supporting evidence.

2. Lodge an appeal before the indicated time limit expires

3. Submit a fresh application (advisable to wait maybe 6-10 weeks)

At this time I strongly suggest preparing a letter asking for reconsideration, however you must also lodge an appeal. Do not wait for a response to your reconsideration letter before making appeal.
The reasons are that, the request for reconsideration may not be processed before the expiry of appeal time limit. Or, the reconsideration may be reviewed bu not given in your favour, or the reconsideration may not even be looked at. (There is no obligation for the ECM/ECO to even review any direct correspondence)

You may not even wish to consider a fresh application, but I mention it only because it's an option. Furthermore it may be quicker than an appeal. No-one can say 100% for sure. But this may be the most practical approach if you feel you will be unable to prove your side.
Appeals can take considerable time, and these days they are not freely available. I don't think the cost is too much though (maybe between £100-£200)

It's very very difficult for anyone to give you any meaningful advice without having full knowledge of your circumstances, the actual wording of the refusal and details of the application and supporting evidence supplied.

Just on the basis of the information you have divulged, it appears that the ECO has cited a number of issues causing him to refuse the visa.

If you feel confident you can counter the issue raised by the ECO by highlighting the relevent parts of the supplied evidence, then just go ahead and make your letter for reconsideration. You must be totally honest with yourself on this.
If the ECO has made errors, you need to state that clearly and firmly and show the evidence was submitted.
If you feel that perhaps your supporting letter was not clear enough. Then by all means re-do that letter, but it must be based on the documentary evidence already supplied.
Reconsideration is based on the ECO making incorrect or misguided judgements.

You MUST also appeal with 28 days. Strictly speaking only the circumstances at the time of the decision can be considered at an appeal, so in principle you can't send in something that did not exist before the decision to refuse was made. Having said that there's no harm in trying if need be..It's up to the tribunal Judge.
Make sure that you use the time you have well in order to support your appeal
Now, when you send in an appeal the ECM (Entry Clearance Manager) will review the refusal decision, this is normally carried out on receipt of the appeal and before being sent to the UK. So if no action was taken on your direct letter asking for reconsideration, that process will be undertaken now.

I would also strongly suggest that you consider the issue around your case with a view to hiring a solicitor/lawyer/advisor.
Here's what they will do for you (in principle)

- Analyse your Initial application
- Check your supporting documents
- Examine your refusal letter
- Draft detailed grounds of UK Visa Appeal, giving legal reasons as to why your application should not have been refused
- Provide expert caseworker to represent you before the Immigration Judge when your Visa Appeal is heard. They would use legal arguments, case law and immigration rules and policies to present your case.

Of course you can quite simply represent yourself if you wish and you feel confident that the issues are complex.
It's not like being in a normal court and standing in front of a judge, it's much more informal, and besides they are used to dealing with the applicant's sponsors so its nowhere near as intimidating as it might sound.

As for right now, make sure you fully understand the grounds and all issues for refusal.
Re-visit the application submission and supporting letter and do try to be as honest and objective as you can. Ask yourself if you had really covered all the angles and presented a sound case. Then start to counter those points so that they can't be questioned and that that they will now become self evident in actually meeting the requirements.

You can always ask questions here for specifics.
It's important that you focus on specifics and on the facts. Sorry to be blunt but try to avoid being diverted with feelings and generalities. this is just too serious.

Try to stay positive and keep you eye on timescales.