hotels.com Bad Business dallas , Texas

I will never again book with hotel.com again. 1 month ago a booked a nonsmoking room with 2 beds with the possibility of adding 2 more roommate.The customer representative said no problem. My 3rd roommate called today to check on the parking status. She then e-mailed me to tell me the room has only one bed in a smoking room.  I then called hotels.com and was asked if I read the fine print on my e-mail confirmation( which I received after I gave hotels.com my credit card number).

It states room requests cannot be guaranteed and purchases are non refundable. I was told they cannot help me but I can try to call back tomorrow and talk to the general manager. I called the hotel directly and the front desk personnel states all nonsmoking rooms with 2 bed are sold out. Now it is 3 days before my convention and I am out of luck.

My thoughts are:
1. Why would hotel.com tell me yes they can reserve and nonsmoking room with 2 beds , take my money, then send me an e-mail confirmation stating the room cannot be guaranteed.
2.If I made the reservations 1 month ago why are the nonsmoking rooms sold out.......where did my reservation go.?