Mike just posted an informative piece about AA's 500-mile upgrade instruments (colloquially called "stickers") that can be used by Gold and Platinum elites.
I wanted to add a few more details... (So read his post first.)
1. Those upgrades get more expensive ($35 instead of $30) if you have to buy them at the airport.
2. If you request an upgrade w/out having enough stickers in your account and that upgrade clears, you MUST buy the stickers. You can't just say, "Nevermind. I don't want the upgrade. Put me back in coach." Putting you back in coach will require you paying the change in fare if your original fare bucket is no longer available. And if coach is booked full, you're REALLY screwed. So don't request the upgrade unless you either (a) have the stickers in your account, or (b) are willing to buy the necessary stickers.
3. Upgrade stickers never expire, but you can only use them (with the exception of Y and B fares) if you're elite. So if you have 10 stickers in your account, then fail to requalify for next year, the stickers will stay in your account until you become elite again and use them.
4. Stickers aren't the only way to upgrade. You can also (a) purchase an upgrade at the airport kiosk, on the rare occasion that it's available; (b) use miles + copay to upgrade (15,000 miles + $50 on a domestic flight) if there are available seats; (c) you can use a Systemwide Upgrade (SWU) given to you by someone who is EXP.
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