For those of you in europe, although it's not quite the same thing as Y Combinator I've been following the Seed Camp blog. This seems to be something that may be of interest to you not in the US. http://www.seedcamp.com/
As for those who got rejected (like me and my partner), just keep on working at it and keep your eyes open to opportunities. We tried and by far that's far better than not trying at all.
t.