My heart goes out to you. Companies are looking for just any reason they can come up with to give workers the pink slip. They are so terrified about the economy, I guess.
At least you have some job experience, so maybe that will give you a leg up on grabbing another job. Please just get out there and start sending out resumes again, etc.
I know you are bound to be in shock. It's hard to believe these things happen, but they are happening more and more frequently now.