OK, we received our passorts with visas yesterday! That is the happy ending; here is what it took to get there....
We started off badly when the US postal service took 7 days to deliver a priority package! No explanation from them....maybe it was a snafu or a reflection of the cutbacks.
We started calling at that point and were unable to get through. We tried email without response, and when attempts at faxing failed, we sent an overnight letter with an enclosed Fedex "overnight delivery" label for passport/visa return and an urgent request to expedite our application.
As the days ticked by, we looked into "second passports" and even considered flying to DC (from Seattle), as a last resort. Eventually we were able to get through on the phone, (I was so surprised I was nearly speechless!), and they were very nice and reassuring that they were "on time" with visa processing. The concerning news was that they could not confirm that they received the overnight return label.
Several phone calls and emails later, we got the news that the visas had been sent, using FedEx overnight. The turnaround time was 21 days from the day we mailed in the application and with only 4 days to spare considering holiday closures.
My advice is to apply sooner rather that later, because the unexpected may happen. I'm also convinced that our efforts (let's face it, downright begging), helped out. On the rare occasion when we got through to a human, they were sympathetic and supportive.
We are leaving right after Christmas and I'll send a trip report on the return.