didn't do so well during 1L-can I drop out and retake the lsat to try to get into a better school? will the 1L grades haunt me?
You just need to suck it up and continue, at least if you really want to be a lawyer. Just network, network, network, and try to do clinics and externships to get as much experience as you can, and you'll find some job. It won't be BIGLAW, but midlaw isn't so bad.
And I hate to say it, but I hope more people over on the pre-law board see this post. This is an unfortunate example of why 0Ls should NEVER choose a law school that they wouldn't be 100% happy attending because transferring is never a sure thing.