I'll wrap up this eight-hour marathon now. Many thanks indeed for so many texts, tweets and Facebook comments on yet another dizzying day in the Rangers story. Thanks for your company. All the best.
- FT: Queen of the South 2-0 Rangers (Holt, Reilly)
- Ally McCoist tenders Rangers resignation
- Board will not accept immediate departure
- Took over from Walter Smith in 2011
We'll have Ally McCoist's post-match comments on the BBC Sport website as soon as possible. It's a confusing picture for the Rangers fans that can, probably, be summed up thus: Ally McCoist has tendered his resignation to the Rangers board, which, by dint of his rolling 12-month contract, means that he has in effect handed in 12 months' notice to Rangers unless they want to pay him off in full or, by way of some sort of compromise, in part. McCoist says that he plans to be the Rangers manager "hopefully for the foreseeable future". His team have won two of their last six matches.
Bellso, Glasgow: "I feel for Ally he has been a legend for Rangers but i think his timing today was out of order before an important match. He should do the right thing now after the announcement and just walk before he is pushed. Your a legend Ally and you always will be thanks for the great years and all the best."
Stevie, Motherwell: "Why all moaning by the media yet nothing about Queens winning? Well done Queen of the South, a part time team too great result!"
A dejected Rangers fan trudges away from Palmerston. Automatic promotion looks difficult at this stage with Hearts able to move 12 points clear if they win at Cowdenbeath tomorrow.
Ally McCoist completely refused to comment on his position at Rangers other than to say he expects to be there in the coming weeks.
Ally McCoist: "No excuses - performance not good enough. We'll look at it tomorrow morning and we'll move on."
In his post-match media conference, Ally McCoist says he expects "100%" to be back at work tomorrow, as if nothing has changed.
Rangers boss Ally McCoist tells BT Sport: "The buck stops with the manager. Hearts are absolutely firm favourites. I think the fans will get some clarity (over the next few days) - I can't comment myself. I'd like to thank the supporters. They did not get a performance tonight. There's promotion to be played for. It looks as if there's a confidence crisis. We can do a lot better than we did tonight."
Asked how he would sum up his time as manager, McCoist replied: "Eventful."
And is there more to come? "Absolutely."
Marty in Viewpark: "I feel so sorry for Ally with what he has had to put up with after taking over. If anyone deserved a break it's him. He's had one hard job since the start. Whatever you do Ally I wish you all the best mate. Hope you don't go though but who would blame you."
Queen of the South manager James Fowler
"We were different class. I think we controlled it from start to finish. The difficult thing is picking the team. Holt surprised me with his free-kick. I don't think I've ever seen him hit one like that even in training! Rangers did have that wee spell in the second half. That's why we brought on Derek Lyle. If we come to the end of the season and we're in the top four we'll be delighted."
"The manager has shown too much faith in them (his players). I think this comes back to an inherently cautious approach by McCoist. He was let down by certain players tonight."
Colin Armstrong: "If McCoist doesn't leave he will make us an even bigger laughing stock! He has to go to give us a chance of making playoff #bbcscotfootball"
Text from Glenrothes: "As much as I feel for Ally McCoist there is no manager in their right mind would have signed Boyd or Miller for Rangers and they would have got rid of McCulloch. They are well past it and should never wear the blue jersey."
Sportsound host Richard Gordon points out that coming through the bottom two divisions Rangers lost just three out of 72 matches but in the Championship they have already lost from out of 16 matches.
Gavin Reilly scores Queens' second goal of the night, giving Steve Simonsen no chance.
Thanks to my colleague Kenny Crawford, who informs me that tonight's goalscorers for Queen of the South - 21-year-olds Kevin Holt and Gavin Reilly - are both from Dumfries and both came through the club's youth system.
Just a few minutes to go at Palmerston. It will be just two wins from their last six games unless Rangers can score three times.
BBC Scotland football pundit Derek Ferguson
"I think one or two (Rangers players) have already chucked it and they're feeling sorry for themselves."
Stevie Hannan: "It's all well and good disparaging McCoist, but where is the on-field leadership for Rangers just now? Where will it come from in the future?"
Dylan from Bearsden: "If Rangers are losing 2-0 against Queen of the South, they are in for a thrashing against Celtic playing against the like of Stokes, van Dijk and Guidetti." To be fair to the Doonhamers, Dylan, they are playing some pretty decent football.
Hearts head coach Robbie Neilson is watching on from the stand. As things stand, his team will remain nine points ahead of Rangers at the top of the Championship, with Queens four points further behind.
Nicky Clark is fouled by Craig Durnan with a body check on the edge of the box. Kris Boyd's free-kick is deflected away from goal and confident Queens retain their two-goal lead as some Rangers fans head for the exit.
dg35hy: "It's not the manager of Rangers that should resign it's the so called players that should, they would not get a game in a Sunday league."
The smile that had returned to Ally McCoist's face at kick-off won't have lasted long as his team have been caught out by two fine Queens strikes.
Now here's a stat and a half: a colleague tells me the last time Queen of the South beat Rangers at Palmerston was in 1956. A 2-1 win, in case you need that for a festive pub quiz.
Andy Dowie gets up well to head a powerful attempt at the Rangers goal but Ian Black is well positioned on the goalline to turn the ball out for a corner.
John: Wonder what the weekly wages bill is at QOS?
Anonymous: "I conducted some research at work today and the only ones worried about SA's (Super Ally's) departure were other supporters concerned Gers might get a decent manager. He is a Rangers legend but sticking around longer will just mean he continues to degenerate in everyone's perception. Sometimes you need to walk away. He has tried and we thank him but it is time to get back to punditry."
Gavin Reilly rifles a peach of shot in off the post to double Queen of the South's lead over Rangers, who had begun to look the more likely team to score. But Reilly's excellent movement got him clear of the Rangers central defenders and he was left with a few seconds to blast home from 18 yards.
The Doonhamers celebrate Kevin Holt's free-kick that opened the scoring at Palmerston Park.
BBC Scotland football pundit Craig Paterson
"Queens haven't looked like the same team in the second half. The change of personnel seems to have put them on the back foot."
Derek Lyle comes on for Queen of the South to replace John Baird, whose effort if not finesse is warmly applauded by the home fans as strolls off.
Rangers sub Kris Boyd slams his fist into the palm of his other hand in frustration as he connects too weakly with a snap shot in a crowded Queens box. Rangers have half an hour to find a goal or two.
Richard Foster stretches his legs with a great run into the Queens half but his pass for David Templeton, on as a sub for Dean Shiels, is too strong and rolls out harmlessly. At the other end John Baird is set up by Iain Russell and smashes a shot a foot wide of the Rangers goal.
John Baird is late with a challenge on Rangers captain Lee McCulloch, who takes a swipe at the Queens striker as he gets back to his feet. The pair are booked by Andrew Dallas.
Nico: "The Rangers players say they are behind McCoist. What better time to show that than in the next 45 mins and get him a win before he finally stands down?"
Nicky Law shows a bit of drive and ambition as he sashays through the Queens defence and hits a left-foot shot that is parried by Zander Clark. The ball falls to Kenny Miller but his shot is panicky and mis-hit and trundles wide.
Rangers midfielder Ian Black seemingly makes the most of a challenge by Andy Dowie. He's back up and running now, though... In fact, I've just seen a re-run and there appears to have been contact right enough - apologies.
Cameron Henderson: "If Rangers go 12 points behind Hearts tomorrow will people actually take Hearts title challenge seriously? #bbcscotfootball"