And the answer is . . .

I got a call back from reservationfriend almost immediately after I posted my updated entry below. Very nice woman who looked and said that the campground never put it in their system that my reservation was cancelled so she would call up Flying Flags and talk with them and then call me back. Apparently, there are two systems that they need to cancel, their own and the one that sends the information to reservationfriend. Well, i guess they forgot to do that one. No problem, now it's done and reservationfriend has it in their system too so it should show up on my credit card within the next 2-3 days. Whew! Not so hard afterall but it's just annoying. But I do have to say that the customer service was excellent when I did have to contact someone so A+ for that.