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Curved residuals vs fitted plot

Apologies, the link to the plot did not work. Here is the functioning link to illustrate the bizzare plot  http://imgur.com/rx2Oc3s   

Would you suggest this plot illustrates a bad model fit?

Would you recommend I abandon the two-vector response and try for binary? If I use 0, 1s it can't be overdispersed, but has less power. However, if the first model assumptions cannot be upheld because of the residuals, binary might be my only option?

Thank once again for taking the time to read this,

Victoria
______________
Victoria Wickens
PhD student
Room GU08
Centre for Agri-Environmental Research (CAER)
School of Agriculture, Policy & Development
University of Reading
Reading RG6 7BE
____________

Email: v.j.wickens at pgr.reading.ac.uk
http://www.reading.ac.uk/caer/staff_students.html
https://www.facebook.com/UniRdgAPD
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