Depending upon the firm/city, firm's generally will not "no offer" their summers based strictly upon grades. If you perform well over the summer (and as I hear it, the bar is not set too high) you should be fine. Granted, I say this while still being rather nervous myself, but that's risk aversion for you...If anything, I feel for the current 1Ls. My prediction is that the majority of firms in major markets will not dip below a 90% permanent offer rate (in the worst possible scenario) to current 2Ls in 2008, but that firms will cut back on summer hiring for 2009.
Well, grades/ranks are in. I went from top 5% to top 9%. At my T2, the difference would have probably made the difference between my offer and no offer at that firm. Here's hoping that my summer firm isn't going to ask for updated grades. :-)
I wouldn't worry about a drop from 5% to 9%! But, expect your firm to ask for an updated resume and transcript at the end of the summer. I think they're trying to verify that you didn't fail, but this is probably not a big deal at all. work hard, try not to stress out, and enjoy your summer.
I'm not making this up. I worked biglaw 1L, and every summer at my firm got asked for transcript/resume. Your firm may not, but don't be surprised if they do. So get your facts straight before you accuse others of making stuff up, pal.