You can use miles by booking hotels through AAVacations.com. I think the phone # is 1 800 949 3556. The last time I checked, the values were not good using miles, however I have seen some very good bonus situations by booking hotels with them when paying for the room. Hope this helps.

Edited to add this information that I was able to find:

Use your AAdvantageŽ miles toward any hotel package, transfers offered and tour options. Browse our website and select the vacation package that best meets your needs and book the package.
When you reach the Passenger Information and Payment page, fill in the information. Make sure the name on the AAdvantageŽ number matches the name on the reservation.
On Part III-Payment Information, click the button for AAdvantageŽ Vacation Awards, after completing Parts 1 & 2 to redeem AAdvantageŽ miles for this reservation.
Enter your AAdvantageŽ number and AAdvantageŽ pin number.
Though AAdvantageŽ miles can only be applied towards the land portion of your vacation package, you can pay for the air portion at the same time in one easy transaction on AAVacations.com.
Note: Land only bookings are allowable for most products at AAvacations.com. If you wish to redeem AAdvantageŽ miles for an air award, you may do so in a separate transaction online at AA.com or you may contact AAdvantageŽ reservations at 1-800-882-8880.


[This message has been edited by fscher (edited 05-05-2002).]