Hello,
I did the same as poster number 5. My application (British passport) was rejected after 4 weeks. When I applied i asked and the people at the consulate didn't say it would be a problem, but they did remind that I wouldn't get my visa fee back if it were to be rejected. Phoning up each day to find out if it was ready (only meant to take 2-3 weeks) I got to know the woman on the other end of the line. She seemed pretty sorry that it had been rejected, so that was some consolation.
I was planning to travel overland to India, but now I'll have to get a flight from Istanbul to Tehran, and get my 7 day visa-on-arrival. It seems silly that even if you are denied a visa, you can still just rock up and get one. And it's making me take a boring, sterile yet dirty flight instead of the train.
Humph!