Question:

Right now (Dec. 20, 2011), the jury is still out considering this issue. However, as things stand now, a Denial is appealable to AAO. 8 CFR 204.6(m)(5) further invokes appeal rights under 8 CFR 103.3, which allows an appeal to be filed within 30 days (or 33 when the notice is mailed and currently they are all mailed). Since the whole process is in a state of flux, it is unclear if anything will be different from AAO's perspective anytime soon.

A particular footnote is appearing more often in recent AAO Decisions and is worth pointing out for the benefit of others:

“The submission of additional evidence on appeal is allowed by the instructions to the Form I-290B, which are incorporated into the regulations by the regulation at 8 C.F.R. § 103.2(a)(l). The record in the instant case provides no reason to preclude consideration of any of the documents newly submitted on appeal. See Matter of Soriano, 19 I&N Dec. 764 (BIA 1988).”

Some useful and insightful information might be gleaned from the following:
http://www.slideshare.net/BigJoe5/aao-reform-and-i-924-appellate-review-expanded-discussion

Best of Luck!