Flyflyboy,
If you took your checkride in a B737 Level C or D simulator, then you should get the type rating. The checkride really doesn't have anything to do with the course you took. First of all, I would ask the school, exactly why they will not issue the type rating. Then, I would call the airman certification branch in Oklahoma City and discuss it with them. They seem to have a better handle on the odd ball things that happen in pilot certification. From what you are saying it sounds like the school is sticking it to you for another course. There could be a reasonable explanation for this situation. Or the school, may be operating under a false impression. Get ALL the facts and talk with Oklahoma City.