I stand by my statement in the other thread. The seller is well within his rights to have limited his offer to a full refund. However, given the undisclosed issues with the pied, my opinion is that it should have included return shipping. Like everybody else, I would have been beyond pi$$ed if I had received that pied.
Jonathan, you made a comment about this thread affecting your livelihood... but you screwed up. Showing that you can own up to your mistakes, and make the right decisions, will not be detrimental to your business. Failing to do so, especially when the matter has fallen under scrutiny, most certainly will.