had to transfer some of the LOC from my Blue to open the new account. Rep from new accounts told me that it was less than 90 days since my last application so they couldn't approve the Starwood unless I did the LOC transfer. Oh well, I guess I'll have to work on getting these limits raised all over again. Looks like AMEX does have a 90 day rule for new apps.
I actually called the application status number and got a message that further info. was needed so I ended up getting connected to a nice CSR who explained the situation for me.