OK, I just read 8 pages of posts. I'm invested now - you have to post the status of getting the camera fixed by Sea and Sea when it comes down to this.
Since everyone has chimed in with there 2 bits, I will as well.
Scubadivergreg - While I understand what you are saying, I think your approach on this was wrong, and you could have avoided much of this with a few slightly different choices in your initial response.
Perhaps from your first conversation you could have offerred "wow, it was brand new and I never tried to use it, but it should be covered under warranty - HERE IS THE RECIEPT, if Sea and Sea doesn't like that you are not the original owner, maybe I can call them as the 'original owner' and get it fixed for you"
You would have ended up in about the same position as you are now, only with your reputation in tact.
As for distaste for being poo-poo'd on the internet, well, my friend, that's the nature of participating in online forums.
Situations like this do occur often when dealing with used, and yes, brand new gear. I think what defines us is how we approach them when they do happen.
On the other hand you are free to post a 'don't sell to so and so' thread, and that would stir up a turd fest too.
I hope that this eventually has a positive result for all involved. Ray likes happy endings.
One thing is certain, from now on, I'll have to have a specific conversation before buying or selling used gear, so that expectations are established on both sides of the transaction. Maybe that's the positive result for the rest of us.
I Hope that you two find something more productive for each other.