Are you dead serious they won't take your driver's licence just because it expired? Wow. I would've thought 5 other cards with your name on it should be good enough, especially if it's something as personal as a credit or debit card, your Medicare, and what not.
So what happened?
And also, on this topic, my friend in sem 1 this year didn't have her student card signed (she didn't think she needed to) and the examiner asked her and she offered to sign on the spot but they wouldn't let her, so she had to produce some other ID. She doesn't have a driver's licence yet, but very fortunately she still had her 2006 student card with her so it passed. So, always bring extra photo ID just in case!