Internships >>>>>>>> Classes (Experience > Education) taken in the experiences I've seen.
For myself, I'm going to medical school, and my GPA was definitely not stellar (of course, it wasn't bad either) but it was below average for most medical schools, however I did well on the MCAT and have a large resume of relevant experiences (in research/EMS/hospital work/etc.) that I think weighed heavily into my application.
For a quick story that may be more relevant I have a friend who's a mechanical engineer; he started at Pitt, ended up getting the boot after having a 1.9 or so after his first two years. He just didn't do well there, period. However, he did pick up an internship in ME during the summer after his freshman year. He worked hard at the internship and did well, he went back to the same company after his sophomore year and worked some more. After getting the boot from Pitt he moved home and finished up his ME degree at a combo program run by Temple/the community college in our area. While he was here, though, he continued to work where he had the internship. Long story short, he has more experience and is trusted with more responsibility by the engineering supervisors than are the new hires. He recently just got accepted into the engineering management training program and after relocation, has a 65k/year + benefits (obviously garbage for ATOT members, but hey) seat waiting for him. Not bad for a guy who went to essentially failed out of school and went to community college. But he got his hands dirty in his field, and did well there.