My own experience on this issue is a bit old (dating back to 1996) but I hope it might still be of some value.
I was travelling on behalf of LH on a free Economy Class ticket FRA-SKG / ATH-FRA, with a paid connection ticket SKG-ATH on Olympic Airways. When OA messed up the connection, LH issued me one of these free stand-by tickets for SKG-MUC which was heavily overbooked.
I was being told that these tickets - the same that LH staff travel on - are treated at the lowest priority, even behind the cheapest Economy fares. Thus I was ranking last on the waiting list. AFAIK, status is not being recorded, because the code where it would usually say SEN or FTL is occupied with an LH staff code.
Literally three mins before take-off and long after gate closing, I did get the very last seat on the flight which was in C, after someone else was jump seated.
Thus I believe, if your flight is not overbooked, you should expect nothing in terms of upgrades. You are travelling in the lowest category, close to cargo.
If, however, your flight is heavily overbooked, this can play in your favour, as you will be the last person to be taken on, which could well be in C or F (although I doubt the latter).
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Hajo's World
[This message has been edited by HajoFlyer (edited 06-04-2002).]