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I cancelled my LSAT score in September 2009.
I received a 160 in December 2009.
I received a 153 in February 2010.

I don't know what to think right now. I am really going out of my mind. I thought I should have cancelled my score but I thought it would be a bad idea since it was my third time taking the LSAT and I could have done better than I thought. But this is not the case. How do I explain this to schools that I have applied to or are going to apply to? I know most schools do not average scores but how much of an impact will this low score have since it occured after my high score?

bump

The same as it would have if it had been your first score. Either schools will average the scores or they won't. Many times, they will have a policy on their website. Look up the info from whatever schools you want to go to. Write an addendum if you want to.

Yeah I really wouldn't worry about it. If schools are only required to report the highest score, then that's pretty much the only one that matters. And yeah, some schools claim they average, but even then I'm not sure how much I believe it.

Write an addendum. Just be honest. You were off your game/feeling ill/burnout/whatever. You knew you weren't performing your best but were so committed to improving your application to X school, you mistakenly decided to keep the score. You sincerely believe the 160 reflects your true potential, and respectfully request the admissions committee evaluate your file based on your original score. It will be fine.