Olympus repaired my housing, apparently it had a defect or something - they acknowledged the problem and its being shipped back to me Wednesday(29th) so I should have it just after the new year rolls over. Apparently the Orings weren't the correct size - perhaps this happened on more than one occasion causing the Orings to pop out in the corners under pressure?
The camera is beyond economical repair. They are creating a case in order to get me a replacement(hopefully). D'Oh!!!
Knowing they repaired the casing, I'm contemplating bringing it UW with me on dives after I get it(before I get a replacement camera) - in order to test its reliability. If all goes well, I may convince myself not to go with the Ikelite casing(probably will kick myself in the butt in the long run). I'll know by Tuesday whether or not they will be replacing the camera or I have to fork over another ~$500 on my own - ugh!