It's a 'semi-standard' letter. Plenty of candidates are no-hopers and get told that thay have been rejected full stop. Immature candidates with potential are usually told to come back in 1 or 2 years to give them time to do some growing up. Stronger candidates applying when there are spaces get acceptance letters. You appear to be in the group of stronger candidates applying for a branch that doesn't have space in the system just at the moment. This is most common for branches that require a degree (ie eng) as a glut of applicants attend OASC as soon as they get their results and the system cannot cope with them, whereas those applying in the spring may even get in with slightly lower scores as there will be fewer applicants to meet the demand at that time of the year. It's all about supply and demand.
Take heart, your is almost as good as an acceptance letter and the shorter the period they give you, the better you have probably done. 3 months is normally the shortest period offered. Moral of the story; reapply in 3 months as the letter tells you to.
