we have never had an upgrade when we asked we were informed that all rooms were taken we also feel that when you take a rewards night your breakfast should be included in hi as there seems to be no incentive in being a priority club member in the uk what do you think !!!! there also seems to be problems with points and you have to chase them up all the time

Upgrades are only available at certain hotels in my experience. I tend to stay at the same hotels repeatedly and find that particular ones will upgrade automatically without even asking. This works both ways of course in as much as those that refuse to upgrade will always refuse. Within the Intercontinental Group, I usually find Holiday Inn provides the best value for money (there are a few exceptions to this). I stay at the Plymouth HI and they always upgrade. The Washington Tyne and Wear on the other hand generally refuses. On the odd occasion my wife comes with me on business trips, it is extremely good value to have breakfast and dinner for two as it is for the same price as one. I have never found another hotel chain that offers this.

My thoughts on this are well documented, and I sound like a broken record when this comes up.

Short answer is I think the program is wrong to "overuse" the 'subject to availability' clause, but thats managers discretion.  Second point is - your right that a range of upgrades should be selectable. 

Mr Chadwicks tips are worth reading thou.