So if I can't buy a one day package and then turn in my GAD ticket the second day and then upgrade after that for more days?
That was option #2. However, this saves you very little unless your stay is very short. Each day beyond the 4th costs only $3+tax. You never say what the length of your stay is, but let's say its 7 days, and we'll leave the tax out of the numbers, but know you'll pay tax on whatever portion of money you actually pay out of pocket. We'll just talk one adult ticket.
If you want to use BOTH tickets, it doesn't matter whether you upgrade the package ticket or the GAD ticket, it costs the same.
So, to use both tickets you'll need to upgrade one of them to 6 days. You've already paid $79 for the 1 day in the package. It will cost you an additional $152, so you end up paying $231 to get 7 days worth of tickets. But a 7 day ticket only costs you $234. Using the free 1-day ticket only saved you $3.
Now, if you forget about the 1-day ticket in the package, save it for a future trip - take the 1-day GAD ticket and upgrade it to the full 7 days, you'll pay $155 to upgrade it. It's $3 more than the other scenario - but you have another 1-day ticket in hand for a future trip that is with $79 (or more if prices go up) that can also be upgraded. In this scenario, you save at least $79, not $3 - with the proviso that you need to make another trip that does not include tickets in a package.
Ok, I have another question. The tickets that I am buying for my package, are they tied directly to our names? My sister and brother in law will be out there at the same time. Could I sell them my tickets that are part of my package and use my gad tickets?
Your names are on the KTTW cards, but the ticket entitlements are not technically tied to anyone. Ideally, you'd go to the lobby concierge at the resort and ask to have the ticket separated from your KTTW card. Alas, this seems to be becoming an increasingly more difficult task in finding a cast member that knows how to do this.