AHHHH

So the second attempt was even worse. The guy at the window recognized me and sent me back to his supervisor. She explained to me again about the work visa and I gave her all I had. Still she insisted I must have changed the documents because she read them all. I had feared this and knew I should have had enough composure to fight her the first time, but I was not ready and when I was it was too late.
So now I am attempting to do all the research I can on staying in Spain longer than three months. I guess worse comes to worse I go for three months and that's it. From what I can tell it is only legal to stay in the Schengen countries for three months within a six month period, meaning I can stay three months and ten must stay out of the 14 Schengen countries for another three months. Most of what I've read says that they rarely enforce these rules, especially if you do not do any travelling outside of teh Schengen coutries (as the agreement of these countries is that they will not chekc your passport when travelling between them). However, with my luck I will be the one person who they enforce this rule upon and be exiled from Europe for 20 years.
I am awaiting replies from the agency and Kirsty about what can be done about this.