I'm sorry.

I feel your frustration, I'm there too. I started insulin a few days ago, after following the diet for about 2 weeks, for the same reason...my fasting numbers were too high, usually 100-110ish. (They went straight to insulin for me because I couldn't take the pill due to a drug allergy.) So far, the insulin doesn't seem to be helping much, and my after breakfast numbers are high too, although I seem to even out more through the rest of the day.
I have the same concerns, though...I'm afraid of going too early, or having to have a c-section, or the baby having complications from it. It definitely changes things...with my first child, I didn't have any pregnancy complications to speak of, so while I still had the regular worries just because, I didn't have any specific reasons to worry really. Hang in there...hopefully everything gets straightened out soon and you (we!) can get those numbers better under control.
Oh, and as far as the insulin...I really did NOT want to go there either, but it's not horrible. I hope you won't have to end up with that, but if you do, you can do it.