Lloyd Carr lost to Appalachian State.
Va tech lost to James Madison last year, still finished in the Orange Bowl...(App State was the best team in the FCS, that year they could've won the Big East)
Michigan also finished 9-4 that year with a victory over a Tebow(Heisman year) led Florida Gators. Finished 2nd in the Big Ten(could've won it against Ohio State), finished #19 in the poles that season.
Michigan would've been a great team if they didn't hire Rich Rod IMO, they had probably one of the best QB's in the nation transfer(Ryan Mallet). Could've easily put a great team for times to come.
3 10 win seasons, and 3 Big Ten titles, not a Top 5 team, but defiantly Top 15.