this is grad school i am talking about, not college. College grades only matter to get you into grad schools, but law school grades seem to matter a huge amount for getting your first job at least. In the long run I know it probably won't matter where I went to school or what my grades were, but getting a good first job definately doesn't seem like it would hurt.
I don't know why grades matter so much in law school because they seem very arbitrary, but they do. If I can get my rank down to top 15%, I could be competive as a transfer student at top 30 schools (Boston U and BC verified this for me). Not that I would transfer, but grades basically mean everythign here, at least for first year.