I had a similar experience with Hotwire. The property was listed as 3* and I panicked when I realized the location. The hotel was in a seedy part of Kissimmee, not the part that is closer to WDW. When we pulled up to the "motel", I realized that there was NO WAY it could have ever been a 3* listing, much less a 1 1/2*. I asked to look at a room, and it was disgusting---the counter in the bathroom was broken off in half, and the carpet was almost black with stains. I went back out to my car and called Hotwire and explained the situation, and told their CS representative that I felt that the "hotel" had been misrepresented to me. I asked for a refund. They complied with my request, but only after I booked another property for that night through Hotwire. I had done quite a bit of reading on the betterbidding.com boards, and felt safe selecting one of the properties I was offered. In the end we had a much nicer hotel, and were very happy with the way it all worked out.
BTW, it might have worked out like it did because the property I had originally booked had been downgraded since my booking. That probably helped my case, but I was prepared with a digital camera to back up my claim.
Hope that helps!