Hi TB10
It could be a squint problem - this is when the a weakened eye muscle causes crossed eyes meaning that when the Optometrist does his checks the measurements for dioptres of esophoria and exophoria are outside the limits.
They can be flexible on this however, in my case, I was quadruple the limits but the Optometrist adjudged that it would not cause any loss of peripheral vision or double vision (diplopia). Hence I could geta class 1 only that my long signthedness is outside limits!! GRR - am working on that one though. I was aware I had a squint as I had surgery when I was a kid.
A mate of mine had a similar experience to you, went for the class 1 and failed whena squint was discovered, he never knew about it. Because the Optometrist mentioned a specialist i would say you should pursue it.
I'm trying the Bates method to bring down my prescription but it also claims to be able to sort out crossed eyes. Do a search on bates, squints and eye muscle on this forum and it may help you. I recommend calling the CAA medical centre and aking them to fax or post you the optometrist report as it will outline how you failed.
Sorry to hear about your news, dont lose hope though.
Cheers