You state your wifes game was reset to level 8, but you state she cannot log into Activate? So is the level 8 game actually her local save?
If you load her game is there a Kudos button present in the top right corner of the screen?
In regards to the date issue you two are seeing after upgrading the firmware on the S3's can you provide a screen shot? Maybe link a photobucket page with the screenshot in your next post?