Burkobow:
Law schools will see your entire undergraduate GPA, from both schools. The good news is that many schools claim to notice improvement. That is, if you get a 4.0 during your next two years, your 3.55 avg GPA will look "better" than someone who got a 3.55 every year.
As for GPA weighing, engineering students generally get a bump but I haven't heard of a bump for business. I wouldn't count on one.
If you hope to go to law school right after you graduate I highly recommend taking the June 2008 LSAT. If you're happy with your results you can apply to schools as early as September. If you aren't happy you can always retake in September and still get your applications in fairly early. In law school admissions, there is a significant advantage to applying early in the admissions cycle (sept-oct).
Finally, I recommend you take a look at
www.lawschooldiscussion.org. There's lots of good advice to be had there.