I think I got it taken care of. The guy at the store didnt know what was going on, but they did supposedly get the bill knocked down to a normal range (they would not credit me anything though).
The itemized bill shows numerous 1-minute calls within a short period of time after actually making a call. Some of these even overlap each other (the guy at the store pointed it out.) He did some crap on the computer and then called someone and got my bill knocked down to $84 and said if it happens next month come back.
I dont know what would cause the multiple overlapping calls, but apparently they feel they have the problem worked out.
You need to keep fighting them to get credit - just lowering your future bills to what is normal is not acceptable. This is one of the main reason I recommend setting up auto-pay on your credit card (preferable AMEX). When you have unauthorized charges or charges that are incorrect, AMEX will take it up with AT&T and essentially fight the battle for you. I went through something similar with Sprint where they refused to give me a promised credit. One call to AMEX and they credited my card without even questioning me (I don't even know if they went after Sprint for the money). As long as you're not abusing the system and questioning the same charges every month, this is a very effective way of keeping these companies honest.
I know this doesn't help you with your current situation but it's something to keep in mind in the future. In the meantime, get your facts together and keep elevating your complaint until you get credit for all incorrect charges.