Alright, it's my turn to apoligize! lol!
I spoke to Winston, who is a customer service manager at Disney reservations, he was super informative, very nice and helpful. He said they were thrown for a bit of a loop this morning and that the agents were just informed that they have implemented a new program in the reservations system and that you still do not have to rebook or cancel, but that the computer will not automatically charge you the new ticket price. He said that this procedure and program were brand new and some of the agents were still confused and amight not have been giving accurate information to guests.
So, I went back and looked at the reservation that I added the code to this morning, which was for a friend of mine who was at work and could not hang on the phone all morning trying to get the discount, and my math must just have been wrong. They were charge about $100.00 more for ticket increase prices.
Wow, you can always learn something new on the Disboards! I still don't think it's good customer service, and Winston agreed, but it is what it is. We were lucky enough to get a pin code a few months ago for the LM rooms and did not have to pay an increase. We have a large family and usually stay 9 nights, so this would be a substantial increase for us. Free Dining would still be the best discount for us, but you would have to factor in the ticket increase.