Lupus is a very tricky disease - very difficult to diagnose, because everyone seems to have different sets of symptoms-that mimic other illness.
There are different forms of Lupus. Sounds like they were trying to do the biopsy to determine if you had the skin-type Lupus (Discoids). SLE patients can have a rash involved and even UV senitivity, but not to the extent of Discoids. I do not know too much on Discoids, you may want to do some research on it. Have they done blood work? Do you have other symptoms of SLE or Discoids? (You can look symptoms on WebMD.com)
Plaquinil is a very slow working drug that has to be slowly absorbed in the body and that level maintained for it to work effectively. Don't give up on it - it is one of the best bang-for-the-buck (it does a lot with few side serious effects).
Hopefully your doctor can give you some insight (are you seeing a Rhumetoidologist? They are the best for Lupus.)
Hope you feel better soon!!!