SOLUTION FOUND

After much anguish I have found the IT glitch that causes this error. My problem was that I could not book any award ticket on the site. Then I realised I could not even buy a ticket on the website. I changed every field possible to eliminate possible fields and I found it.

On page two during the "Checkout: Passenger Information" under "Contact Information" section in the phone details drop down - I changed my Australian phone number to a US number and it worked. Apparently, Alaska Airlines website does not allow bookings with ONLY an overseas number (or at least an Australian number), one MUST have a US/Canada phone number. I used my wife's US number and it worked.

Now I am back in business. Now if only Alaska Airlines customer support would reply to my email requesting assistance in this matter. I would gladly point out this IT glitch in their booking system if they care to listen and act.

How on earth will AS attract overseas members with a glitch like this?