Widgetgirl - I am sorry things didn't work out for your son! I know it is tough now, but I imagine it will work out in the long run.
I am going to stick my nose into this thread, though, and give you a "heads up" since I read in your OP that you have daughter(s) who may be going through rush in the future. In the south, at schools with what is considered a competitive rush, (Ole Miss, Arkansas, etc) it definitely DOES matter if you daughter is from out of state. It does not mean that she won't get a bid, but it is definitely a factor. Also, no one will call the legacy connection of a rushee to explain if/why her daughter gets cut. That is actually not allowed by in the rules of recruitment.
I have a daughter (two, in fact) so I completely understand your position on this issue. I encourage you to read the archived recruitment threads on GC for info regarding NPC recruitment to get ready for your daughters rush. The help will be invaluable.