We were thinking of an appeal but not sure how to go about it. Do we still put the schools on the CAF form??
Yes - usually you can only appeal if you have applied and been refused.
Are we supposed to contact the school for an appeal form
and do we do this now or in March??
You won't be refused (officially) until March, so you can expect to have to wait till then.
Also do we really have a chance for Herschel or St Bernards as we would like to appeal to these two schools.
It rather depends what sort of case you can put forward to convince an appeal panel! http://www.elevenplusexams.co.uk/appeals/general#a36