C25K sidelined by bursitis of the knee

I started C25K about two weeks ago. The first week went fine and I did all of the workouts without too much trouble. Last Tuesday I tried W2,D1 and immediately my left knee started hurting. It has been excruciating ever since. I've been icing and taking ibuprofen. Have not gone running since. This morning I went to the doctor and she said I have bursitis in my knee. I am going to start a short course of prednisone and get some aspirin cream. Also she wants me to see a physical therapist about strengthening the surrounding muscles to (hopefully) prevent future problems.

I am really frustrated. I am new to running (except for 30 years ago in middle school) and I have been really excited about the C25K program. I really want to run! My doctor tried to discourage me from running and suggested I try a stationary bike or elliptical instead. She said, "Starting to run at your age (47) is really dangerous." I don't have access to a nearby gym or the money to buy equipment for my house. Besides, I WANT to run.

Do you think it is possible for me to get over the bursitis and actually complete the C25K program? My goal is to run a 5K before the end of 2014.