You're the one who gave her up, Chris. After that, she's free to date whoever she wants, and you need to stop being bitter about it. Nothing you say, or what anyone else says, is going to change that. From what I've gathered, you just seem like a really angry kid. Your girlfriend told you from the start to leave "Skeletor" alone, but you wouldn't listen to her at all. You even went as far as to get his girlfriend to break up with him. I mean yeah, what he said to your girlfriend might have been wrong, but what you did is just as low.
You might not like it, 95% of your school might think it's impossible, but the fact is that he's with her, and you're not, so move on and stop clinging to the situation. It's childish, and holding a grudge over a high school relationship is stupid.
If I were you, I'd stop hating that guy (who I'm pretty sure you're over-exaggerating about, seeing as how you're calling him ugly, and he just looks like a normal dude), stop thinking about the girl (who is kinda hot I guess but she's nothing special), and move on. Get yourself a new girl, or just stay single. It's not that big of a deal anyways, she's just a girl dude, and you're only sixteen. Get over it. Nobody is going to give you some magical distraction, this is entirely up to you.