Interview mistake due to being nervous, said was laid off instead of...

[ouphikap2000]

...terminated, how to handle4 2nd interview? I am in a situation that researching on the internet and ask associates of mine which I have not been able to find an answer and was hoping to possibly request your opinion or suggestion on how to best handle it. Without going into a thesis here is my situation:

My company was set up to where the owner would sell the company to the employees so he could have an exit strategy and retire, and as such left control of the firm to the employees. This was before I was hired a year ago. Recently I was terminated from my position with this company. I was not given any reason, it just happened, The head supervisor called the previous day to tell me he was coming to visit me to deliver a letter from the owner and would not explain what it was. I assumed via rumors from the grape vine that it was due to the loss of a VERY large client and as such the owner was seeing that the company was suffering a large financial loss and decided to come back in and take control and employ cost cutting strategies via eliminating some of the staff.

My head boss would not tell me as to the reason for it, my letter just said I was being terminated. Anycase I had been interviewing for a position, and have been very fortunate to get an interview with a company I had coveted for quite a long time. My only problem is that I was caught off guard by a question on whether I was still with my current employer to which I went ahead and stated the above story of the owner coming in and as such the company laid me off, instead of saying I was terminated. It was a huge stupid error on my part and now I have a second interview next week and I want to correct myself and tell them the truth, but I have been getting mixed answers as to what to do.

Some say don't say anything and others say do. I think I am in trouble either way but I was wondering if you happen to have had any suggestions as to how to approach this? I have copies of my past two evaluations which rated me above average (the most recent one was a month before I was terminated) as well as two letters of refererences from my immediate supervisors who are under my head boss. If you can I would appreciate any suggestions or advice you may offer, I could really use the help, because this is my dream job that that has the perfect local, opportunity and everything, and I am scared that I dug myself in a hole that I can't get out of.
I have nevered lied about my other time I was terminated during undergrad, and always told the truth, kept it short and sweet and then said what I learned from the experience. I just hope that there might be some way to salvage the situation.

Thank you for your time in this matter and I appreciate any advice you may have to offer.