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Interviewing is a special skill. I would try practicing it with real people (if you haven't already), and to actually implement the algorithms you are struggling with in real-time with your friend that is "interviewing" you. Basic point is that you need to spend some time practicing like crazy where you have the ability to "fail" with friends. I have done a ton of technical interviews, done a qualification exam for my phd (twice :-) ), and its hard. You have to learn how to improve your speaking capabilities, and know the material well enough so that you can speak confidently. Basically if you feel like you are winging it, then you don't know the material well enough. If you feel like you know it, but then "suddenly" forget the info, then that is basically like stage-fright, and you need to practice with people like crazy. Another method is to create like 10 questions that are annoying questions that you can imagine somebody asking you. Then save them someplace. Then on a random Friday afternoon, pull out those questions, get a blank sheet of white paper and sit down and "answer" those questions without looking at a book, and time yourself as you do it. I would not give up, just keep trying.

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