I had a similar problem with the Italians a few years ago.

I was travelling on an Alitalia issued ID00 non-rev ticket through FCO to BOM with no intention of staying in Italy. However, their OWN DARN REGULATIONS require that all non-revs have to hold a valid visa if transiting through FCO in case we get bumped. Fair enough, I can spring for a visa since the tix were free.

However, they also required me to show them hotel reservations. This was impossible since I was NOT STAYING in Italy. I argued for a long time with some peon at the consulate in Miami, who insisted that it was not possible to issue a visa without hotel accomodations that I didn't intend to use. He said that an exception to this rule could be made by personal appearance at the Italian consulate in my "home country" (India in this case, although my passport is endorsed with my US address as well). I told him that I couldn't GET TO INDIA unless I got a visa through Italy, or if they issued a transit visa waiver. He refused to budge.

Since France and Italy are both Schengen visa states, I called the French Consulate in Atlanta one morning at 11am. The guy there told me to come over by noon. I had my visa within the hour, valid for all Schengen states. I used it to Germany and Italy before it expired.

So my suggestion is to call the Germans, French, Dutch, Spanish or Portuguese instead of the Italians. A visa issued by them works just as well and is usually less of a hassle to get.