I just got through my first lessons that I purchased as a special during Valentine's Day from A.M. I do not have a partner, and so far I have been loving it up. All of the instructors have been fantastic. Now, with my first real purchase of several lessons, I went into the beginner's practice after the private lesson, and was in the room with only "students that have been taught there for 2 or more years. I felt inadequate. And one of the three instructors just let me go around and be clumsy .( who isn't at this point)( She was a 10 with the others) Today, the day after, I have this depression starting to overwhelm me. Is this normal, and is there any tricks to overcome it. I want to dance and be good at it.

Any feedback will be greatly appreciated, thanks in advance, Me.

You'll get better fast by being around those who know a lot more than you do. You wouldn't gain anything by being in a practice session in which you knew more than anyone else somehow. You always get better by watching others -- and then asking a lot of questions.
You'll be fine.
I am becoming rather surprised at the posts by beginners who seem to be expecting miracles. This art/sport takes a long, long time to learn and then just about as long to get halfway decent at it, and then a lot more time to get really good.
But it's a fun road, no matter how far you travel it.

I can't say I understand the particulars of your situation...but generally let me respond.

It is normal to hit that cold bitter wall the first time you come across other students that you don't know. Try not to gauge your progress against theirs. You don't really know how long they've been dancing. (By the way why are they keeping groups of students isolated from each other? You should all be spending time using the same dance floor, together.)

I remember feelings of misery and anguish when I jumped out of my chain and hit the floor of my first real dance studio. I had been dancing for years and I felt so lost and so inadequate and hopeless. It passes. You get better and you'll be better than some and not as good as others and even the best of the competing pros don't always win. There will always be somebody out there who is better than you, and thank goodness there is always by default someone who is worse. Gauge your progress only by the changes you make, the improvements you feel in what you can do. Only you know if you are pushing yourself to your limits.

That being said...not everyone dances well together so don't let the instructors dancing with you clumsily bother you as far as your own skill. Now to her skill...I would be concerned. Honestly many chain instructors aren't much more advanced than the students they are teaching. She may just not be as good as you think. You sound like you haven't had exposure to a lot of other professional dancers.

If I had a penny for every "prodigy" ballroom dancer who was brilliant within two months and then you find out they've had 10+ years of ballet...so don't buy into the head games.