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I had that problem with a ND cheque once last year, they re-issued it and the next cheque worked fine. I ended up getting stuck with the $10 charge for their cheque bouncing, but thats no biggie. Haven't had any other problems.
You sure they're not just holding the cheque because your account has insufficient funds to cover it incase the cheques didn't go through? Normally cheques take a little while to get processed and they wouldn't know instantly. If the cheque didn't work then I don't think they'd put a hold on it, they'd just take the money back from your account.
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