Found this message while fishing in old threads. Sorry if it's a bit late.
You ask many questions in there, so bear with me.
First, Queen's is not that bad. You could have done a lot worse (Algonquin College anyone?), and I'm pretty sure that most people in the US academic world know of it by now (B-school in particular). Last time I checked in McLeans, Q. was still top 10. Oh yeah, almost forgot ... screw McGill. (sorry ... both brothers went there).
Second, the graduate degree. Well, welcome to my pain. Since US news is the only ranking people value out there, law schools have adapted somewhat, and are now going mostly by LSAT and U-GPA. That is, your G-GPA will appear nowhere in what they report. They do consider it, but they still have to play by the rules. You can find solace in the fact that it is a significant outstanding soft factor. Of course, I would invite any one who really thinks a Ph.D. doesn't matter that much to come and complete mine (almost done). The best I can tell you is whta I've read somewhere else on this board: when you'll step in class for the first time, you will be head and shoulders above the rest, intellectually speaking. And that's not negligeable.
Third, your lackluster UG. Well, I have that to, and not from Queen's (other top 10, but admission officers probably do not care much for my transcripts in French ...). This issue has two aspects. First, as mentioned, they have to look at the U-GPA, since they have to report it and are 'graded' on it. That plays against you. The converse, however, is that they report the median and quartiles. This means that you will not screw up their average by being very low. The best way to make up for it is to get a stellar LSAT.
Fourth, the december LSAT will hurt your chances a little. A large numbre of spots will already have been alloted. Be sure that everything you need is ready to get fired off ASAP. Read instructions everywhere to see if you can send stuff earlier. There's just no way around the whole issue. Your background is unique enough that you can present yourself as such.
Sixth, good luck. Really. I feel your pain, as I am pretty much in it myself. Plus I can't even get good poutine in San Francisco.