I think the letters are very important. I only have my opinion here - I'm certainly not an adcom member, and don't claim to know how they think.
I don't think it is relevant that your instructor is from a community college, especially if this person has an advanced degree. I had some PhD instructors at cc, and some MS. It seems like a PhD would be preferable, but I think the most important factor is having an instructor who got to know you in class and has the teaching experience to distinguish a good student from a bad student. My only additional advice on that point is to get the letter now and have the school hold it for you, if you have a committee that does things like that.
I think I had three professor letters, and they ranged from people who had known me a long time, to people I'd had only a couple of classes with. I also had two doctor letters and two employer letters. The doctor letters (according to one of the doctors) are the most important thing. A doctor I shadowed said that medicine is like a big club, and you need another club member to vouch for you if you want membership. Don't know if that's true, but that was his opinion!
