Thank you so much for all of your replies. They mean alot to me!! Regarding the drysuit, it was a rental from the manufacturer at their demonstration day. The rest of the gear is mine which was purchased new four months ago. My instructor taught us to use the drysuit for buoyancy control, not the BCD. That's probably why my buoyancy was out of control and used up alot of air. But I do not recall inflating the drysuit once after I saw my air was at 550. I was just shocked and will take y'all's advice to have my SPG checked out as well. My instructor told me 5 times after this happened that I should have went to the surface regardless, never to dive back down. I guess that's why it's still unsettling to me.
Scubette,
First of all, I'm very glad that you went for the closest air and all turned out alright.
Had you had a way to go up, you would have found air being released from your lungs as you came up. But the only way I can think of you really making it up before you passed out or took an unwanted "breath" of water, is if you released your weights and then ascended faster than a controlled ascent. But you knew you wouldn't make it, so I'm wondering why your instructor believes the way they do. Out of principal, I can understand the reason to "go up", but I'm glad you went the very short distance down to your buddy for air - good choice.
From 45 feet, I would suggest a minimum of 800 psi when you begin your ascent - that's what I do - you never know whether it will be kelp or some old fishing line between you and the surface and I want that extra margin. And as a newer diver in a demo wetsuit - I'd recommend 1000. Better too much air when you reach the surface, than not enough!!!
Also, remember that when you reach the surface without any air, you will not be able to inflate your wetsuit or bcd to keep you afloat, and it's hard to orally inflate your bcd when you out of breath and struggling to keep your head above the water and waves. Be ready to release your weights, if need be.
I always dive with a pony - usually a 19 cuft - how you attach it, etc. is a debate you'll read about here on SB. But, even with a pony, in an out of air situation, the pony does not inflate your bcd. I even do my shallow dives with a pony - not because I need it, but because I try to dive with the same equipment configuration every time so that it becomes second nature.
Rescue Diver (RD) is a very useful and highly recommended course. The RD course begins with recognizing and avoiding problems and then self rescue. Rescuing others is the rest of the course. Redundant air, while not covered in the RD course, is first of all for self rescue, second of all for the other diver.
I love ScubaBoard - it really allows you to learn from others, learn from yourself as you share with others and they reflect back to you, and share your knowledge and experience with others as well.
Thank you for sharing your experience.