That sounds like a bad experience, I do have to say I have never experienced a problem like that using miles. It has always gone smoothly and usually they seem to treat me better because they know I give them enough business to have the miles to fly.
What is unfortunately is that they keep upping the miles required for a ticket. Also, occasionally i get a terminal rep who just does not want to be there and takes it out on every customer.
Hopefully this was an isolated incident.