I would actually be inclined to the same as what Mike has done... If I bought a brand new product that was just released and it had a major flaw where the manufacturer actually recommends returning it for repairs, Id take my money back asap and get rid of the product before something else could go wrong...

Sit on my money for a few weeks or months to see if the company responds with a rectification before making another decision.

I cant see how this is a "user error" either... im sure he did everything correctly - really how can u screw up in this situation?