Hey, Barb,
Well, on the scale of things that COULD be wrong, diabetes may not be the best news, but there's worse stuff out there. I had a several-month "fling" as a diabetic during my second pregnancy. Gestational diabetes goes away as soon as you give birth, but I had to do the whole drill with the nutrition, blood testing, and insulin injections.
Actually, if you stay on top of it, the improvements in your diet, getting regular exercise, basically keeping everything in balance, will probably actually make you healthier. I used the diabetic food exchanges (which are a lot like the exchanges Weight Watchers uses) when I was trying to take off a lot of weight. You get the hang of it, ya know?
Hugs, this is something you can handle.