I think your wife made a reasonable request to be put on the direct flight since Continental's delay would most likely adversely affect the rest of her connections. That request absolutely should have been accommodated if there was a seat available.

I can't believe the P-club manager made that statement to your wife. In what alternate reality did she think complaining about you to your wife would help the situation???

I'm really sorry this happened to your wife. Good luck with your letter- I would try to get it as high up the chain as you can.