Yea, this has been discussed ad nauseam but it still trips people up on a regular basis.
The C7 you see on JFK-LAX when searching JFK-PHX is completely bogus, forget you ever saw it. As Ian mentioned above the C0 you see when searching just JFK-LAX is the true availability. EF puts a warning at the top of the AA award and upgrade search page alerting everyone to this.
AA and ExpertFlyer "Expert Flyer" issues, questions (master thread)