Unemployment problem w/ vacation pay/401K

[sasf322]

I live in Indiana, but worked in Ohio for the last 5 years so when I was laid off due to lack of work in May, I had to file in Ohio. After my waiting period was over my company was a little slow in paying me my remaining unused 64 hours of vacation time. They paid this out to me over two weeks, the same time my unumployment payments starting coming. This caused unemployment to question me each week if I was working and claiming I wasent. Next I decided to take my 401K that I PAID INTO over the last 4 years out in a lump sum with a 25% penalty, to help off set the 50% cut in pay that unemployment would be paying me. Now they said they are counting my 401K as income over the next 3 months and at this time have change my status to denied. Also they have asked back for every penny they paid me during the three weeks I was receiving payments from unemployment. Am I just out of luck with getting them to start paying me again, or do I have any options to try to get this desicion over turned. I have only one chance to appeal this any help is greatly needed at this time. Thank you!