What is Overture up to?

I was out searching the web this morning and ended up at the Yahoo directory. I decided to see if I was still in the directory and typed in my main keyword.
Behold! a spam affiliate/adword site in the top spot on the sponsored listing (Overture). (I normally bid top spot) I quickly logged into my account to take a peak and sure enough, pushed to #2. I then verify the link the again by doing the search from the normal Yahoo directory and Behold! It is still there.
This is where it gets interesting: I promptly call Overture and start inquiring about this spam site at the top of the results. I explain my distress about this site in the results and the customer service rep proceeds to tell me that there was no such site in their listing, either online or offline.
This is the site that just 10 minutes before I was bidding higher than in my Overture account!
Getting absolutely no where I asked to speak to a supervisor who proceeded to tell me that I was basically crazy and this site was not listed on Overture and nor would it ever be because it did not fit Overture standards. After about a half an hour of insisting, questioning and trying to prove my point, they said they would send it over to their "Global Review Team".
Has anyone else ever dealt with something like this from Overture? I am not going to just let this go. Something is going on that Overture could not explain to me and I am going to look for answers.

Being that we deal extensively with Overture, we are always sure to grab a screenshot of such situations. I know it's too late for this instance, but if you saw this once, it will probably occur again.

Overture has a "budgeting" feature that makes the listing appear and disappear throughout the day, if the advertiser has it enabled. So, if someone has a $1 keyword with a $10 per day limit then Overture will activate it for a click or two, then pull it for a few hours and repeat until the budget is hit. This may be what your "spam site" competitor has enabled, which would explain why he's not there one minute later. This is at least a possibility for what you saw.

Well my issue is that this "website" is not even "listed" apparently with Overture. They checked the logs for the morning and they are telling me that this site is absolutely not advertising on Overture. That is my issue.

I would say that your only option is to try to catch it again and get a screen shot. Try searching around the same time tomorrow morning for sure.

Any luck in seeing it repeat?

If not, grab the BidRank demo from my site and set it up in Watch mode for that keyword. Overture allows 48 position checks each day, so set it for a 30 minute delay between checks. Enable bid activity logging and it will log the URL's of the top bidder's for that phrase each time it runs the keyword. Let it run for a few days and maybe it'll catch the evidence that you need. PM me if you have any questions.