Thanks for the update Jamoldo!
This is a strange one indeed....you made your reservation with Priceline and it should be honored at the agreed upon price. The fact that the hotel did not "honor" that agreement should not be your problem.
Of course, when you are standing there... not much else you can do.
I have to say I have had nothing but success when having to deal with Priceline afterwards; hopefully you got to the right people.
Do keep us informed.
William