Pentax Optio T20

I purchased this camera from Wild Digital on 11/28/06. A call from their sales department quickly upgraded my $239 purchase price to a $400 starter kit, extra battery and extended warranty. 7 days after receiving the camera, it froze up with the lens extended. I removed the battery and the camera was reset. The same thing happened 28 days later. This time the battery reset did not work. I sent the camera back to Mack Camera (double boxed and with bubble wrap and popcorn), and they promptly sent it over to Pentax as they said it was within the manufacturer warranty period. Pentax just sent me a letter demanding another $185, or they would send it back to me unrepaired and uninsured. None of the three companies are accepting any responsibiltiy for the defective camera. In checking on some other digital camera review sites, I see this is a common problem with other Pentax Optio models. Now I am out $400, and still don't have a working camera.

3 inch touch screen LCD panel.
Photo customization otions such as framing and editing on screen, writing on with photo with included stylus, etc.

Defective design.
Manufacturer refuses to honor warranty.

Customer service was surly and insistent that I was at fault. I basically have no recourse other than contacting the Better Business Bureau.