From what I understand, AS certainly does affect the ribs and such in some people. Wherever bones articulate (fit together) we can have inflammation and pain. As I recall from my studies, once upon a time, all the ribs are connected to the spine and the higher ones meet up with the sternum. It would stand to reason that these would be the places that we would hurt the most but like Tamara said, I too feel pain at the sides of my rib cage as well?
My PT explained to me that the fusing and stiffness gets worse over time and causes reduced lung capacity. One of the many things they measure when they do a full exam is measuring both minimum and maximum lung expansion. I think mine was less than 3cm which wasn't very good. I was told to practice deep(er) breathing exercises to try to increase this range of movement. I say "deep(er)" because what I once considered deep breathing would now be something that would cause more damage rather than promote increased movement.
Instead of trying to force your lungs to expand to their maximum, you might want to try this: take a breath just a little more than you usually would and hold it for about ten seconds. Do this throughout the day but don't try to exert yourself. At your own pace, increase the size of the breaths and/or the length of time you hold it and eventually, your lungs will increase their capacity and you should also feel a reduction in pain. This is the advice I was given, for what it's worth.
When you overdo it, you cause pain. With the pain and stiffness comes a natural reluctance to not want to do it again. This vicious-cycle leads to reduced ability to breathe and increased pain. So don't overdo it, you won't do yourself any favours by taking the really deep breaths.
I also notice that you are in Van. I loved that city, I lived there before I joined the military and all my friends are still there. One of my old friends also has AS but I didn't know it until I told him about my diagnosis. He either didn't mention it or I never listened. He was the first person to tell me about the Arthritis Center. There happens to be a really good one in Vancouver - so good, my friend travels from Vernon to go there. That's over four-hours away, for anyone not familiar with BC.
Hopefully you will get some answers from your doctors and I would strongly suggest asking for a referral to the Center if you can. I go to the one here in Victoria and I just love it there. Unfortunately, they can't really do much when I'm in a lot of pain because my body just refuses to play along...consequently, I haven't been there for a couple of months.
Take care of yourself peg,
Chris