Glitch Cripples America Online

America Online Inc. was hit with a new technical snag late Wednesday, heightening frustrations among customers just one week after the on-line service agreed to give them refunds for poor service.

Customers nationwide were unable to log on to the on-line service beginning shortly after 2 p.m. PST due to an outage at the company’s Vienna, Va., equipment center, an America Online spokeswoman said. AOL said some users were able to log on by 3:30 p.m. and the problem was cleared up by 4:30 p.m.

The trouble began when technicians were upgrading computer software early Wednesday morning, part of AOL’s drive to accommodate the recent surge of members that has overwhelmed its network. During the software overhaul, the AOL system stopped accepting log-ins from customers, said spokeswoman Tricia Primrose.

People unable to sign on saw a message urging them to call the company’s toll-free help line. A recorded voice said that customers should try logging on again in an hour.

The technical glitch comes as America Online undertakes a massive refund program as part of a multistate settlement last Wednesday. Threatened by lawsuits across the country, AOL agreed to give millions of dollars back to customers who frequently get nothing but busy signals when they try to sign on.

The system delays were caused by a new pricing plan - $19.95 a month for unlimited usage - that attracted a flood of on-line demand, causing extensive bottlenecks in a network that serves 8 million customers.

In its deal with attorneys general from 36 states, AOL also agreed not to advertise the new pricing plan in February to help curb demand.

Some AOL subscribers who have been able to get on-line have refused to sign off, tying up phone lines for days at a time and causing problems in several cities, including Seattle.