Kenny,
No, I havent flown Virgin lately, quite difficult to do really as a US (Chicago) based flyer. I believe the number of planes operating from ORD is zero....
As I stated above, you were most unfortunate to end up with the non-mileage earning fare that you had, but I fear there isnt that much more you can do about it apart from the communication you have already documented with AA in your initial post.
Please dont fall into the old FT category of "asking for an opinion" and then being upset when the responses you receive are not what you hoped for or are not in line with your opinion.
Bottom line, you asked if "you had a leg to stand on". My answer would be "No", for the reasons mentioned above. Please do not let this stop you from pursuing the matter with a small claims tribunal, if you feel this will be succesful and worth the trouble.I just think again purely IMHO, that it would be a waste of time. I would move on and remember to double check my fare class going forward.