My apologies for not posting sooner.
The reality is that I think we actually did win - we just didn't take the prize money. My theory as to why we came in second is because Carly's record label gets full access to and use of our vid, which, in the "winner's" case, the rights are, I believe, controlled by AOL.
We were invited to go up to Ms. Simon's estate on Cape Cod to shoot some add'l scenes and her label's execs said they want to do some other productions with us.
This whole thing was, IMO, a nod and a wink arrangement.
I'll post the winning vid later...