Oh, Kathy!! I am so sorry!!!
Couple things (and I'm basing this on what I can see in the picture):
It appears that there was not much quilting. What was the recommended quilting distance? Were your fabrics pre-washed? It also appears that there was some shrinkage there, too. It also looks like the fabrics went to their normal cotton un-ironed look. Quilting stabilizes the fabric so that it won't wrinkle so bad.
When you pulled the quilt apart, what did the batt look like? Did you quilt the second time (different batt) with the same density, and re-wash? If yes, how did that turn out?
I'm just trying to find out as I've used this in quite a few quilts.
If you happened to get a bad batt, make sure you take it back or talk to the factory. Most are more than willing to track down the problem and find a solution.