That's good to hear! I didn't preference an area either even though my FPA told me to. I guess I sort of took a risk in not listening to her, but hey-it's worked so far! It didn't say anywhere on the website that we should preference any particular region in our writing, so I wasn't too specific in my essays. I know for countries like Germany, they ask that you preference certain regions. Anyway, like you said, we will find out soon enough!
I'm not too sure about the $$ situation, to be completely honest. I would assume they pay enough to help with housing and whatnot. I can tell you that Madrid will be slightly more expensive than Cantabria in terms of housing and food, so that's something to keep in mind should you receive a grant. Either way, you'll make it work, I'm sure!
Regarding grad school, I applied for fall 2014. So far I haven't had much luck. I applied to masters programs in Hispanic linguistics. I've been wait listed at two schools and rejected from another and I am still waiting to hear back from a few more programs. I sort of just feel like I'm in limbo right now! Also I am currently teaching high school through the end of the school year but it's not a permanent position, so next year is COMPLETELY up in the air for me! Woooo!