Seawolf, thanks for your feedback.
I have stressed out to the manager of call center at AB with the option #3 "Take economy and pursue EC261/2004 Article 10. Be sure you have all your documents showing confirmed ticket in business and when you confirm with AB you will take economy you should document by taking economy, you are in no way giving up your rights under EC261/2004. You may end up having to take this in European judicial system if AB plays hardball."
I think at this point, I will wait until I hear the final decision from DOT. If anyone else is also interested, please submit your claim to the DOT as well! This will strengthen all of our cases!!
http://airconsumer.dot.gov/escomplaint/ConsumerForm.cfm
Please submit asap!!