I'm listening to Ken Schwaber's presentation to Google and it's very interesting. The last question he answers is with Agile exposing existing problems within your company. (Someone had a bad previous experience and was asking for suggestions for the future.)
It's possible your company's management has decided, due to lack of money/resources/energy/what-ever, they want to leave those cockroaches alone in their dark corners. "Don't bother them, and they won't bother you. The only problem with that is, eventually you/they WILL have to deal with them.
Agile is the flash light that forces most companies/department to deal with some of their nasty little problems. It's unfortunate that Agile gets blamed when the "agile project" fails miserably because a company's dirty laundry is aired and to no surprise. it smells (a bit).
But this should be viewed as a glorious opportunity for change! Think about how positively motivating it will be for employees to see management fixing their problems! Quite simply, they won't be problems anymore, or at the least, they'll see management trying to fix them (which sometimes is worth just as much as fixing the source issue!).
So, before you blame Agile for your project's demise, take a hard look at the reasons behind the failure. If you continue with your next iteration, you will in fact prove Agile IS a successful process to continue with.
Resources: Ken Schwaber's presentation to Google: http://video.google.com/videoplay?docid=-7230144396191025011