Update #3
I am very frustrated and starting to feel helpless. I am sure this is what Expedia and Iberia want...to wear me down and give up trying for a refund. If I do give up, then I hope my party of 3 are able to accept vouchers as a last resort. I do not even know if the newbies would be able to plan to go again next year so vouchers are not really a good option for them.
I called Expedia today and only had a half hour being on hold this time. They had requested "waiver codes" for the flight refunds from Iberia through emails they sent on April 16th and again on April 23rd but they have received no response back from Iberia either time. (Iberia supposedly tells them they will not accept phone calls from them).
I then called Iberia myself (which I had done on the 16th) and they still say I must only go through Expedia. I then said "but you are not responding to their emails". I was then told that Expedia must not be providing the proper information to them. I know that they are as I have a copy of Expedia's email to Iberia. Every jot, tittle, correct itinerary and booking numbers, and all our names are included in the email.
So then I decided next to contact my credit card company. A recording said my wait time would be an hour, I waited with the music, only to be cut off and disconnected automatically after 40 minutes.
My next plan will be to contact my flight insurance through AIG. I had called them as soon as my flight was canceled and was told my request would be reviewed by an adjustor "case by case" and that I should find out from Expedia first before I fill out a form for a report. I think I know how that will go if I do..."Run around, run around"...it's a merry-go- round, but not any fun.
I am mainly sending this update for myself to let off some steam as I do not expect many forum members to bother reading through this lengthy negative, yet factual post.