I just had a similar experience.  I first got the AT&T dial up service years ago when I got my first DSL service.  At that time it was around $5 and provided email, news groups, and a few other things that I wanted to maintain.  Over the years the cost has gone to close to $8 and the only thing I was gaining was my email IDs.

I contacted AT&T through the chat associated with the internet service and asked whether I could drop the dial up service and maintain my email.  The answer was I could as long as I went through the web mail service.  I confirmed that I would therefore drop the dial up service and asked for the correct phone number.

This morning, after going through no less than 6 phone numbers (no transfers, just endless menus leading to nothing applicable), I finally got to the correct billing line.  I told them that I wanted to drop the dial up service and proceeded to give them all my information.  When the representative asked why I was dropping the service I explained that the only thing I was using was email and I was given to believe I could retain my email addresses with the free service.  The rep. then told me that I could transfer to a new free email address but would not be able to retain my current email address.  When I told her that the rep. on the chat line told me I could, she said that she was sorry that I had been misinformed.

I would appreciate it if you would keep this forum updated if you get resolution.  I agree that at best this demonstrates a lack of communication within AT&T.  In the mean time, I will be going through pages of contacts and associated profile pages and changing my email to a free service.