Ok, so they are now suggesting that they had to substitute the aircraft for an alternative one. This is good for you, because that is something that is within their control. You are entitled to the compensation under the EU directive. You should now write to Continental and tell them that you were denied boarding and that you wish to claim compensation under EU directive 261/2004. Specify what time you actually arrived, compared to the time you were originally scheduled to arrive.
Your rights under EU directive 261/2004 are without prejudice to any other claim for damages you may make.
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