Kris, any word back from Paradigm? Even though you've moved on, I'd still suggest actually mailing a letter rather than email. It is more official, and in my experience leads to better results. You can still build your own subwoofer; just get some money back for the one that broke.
It's troubling to hear this about Paradigm, but it really doesn't sound like it is Paradigm who is shafting you. Their quality is very good (check out
http://www.hometheaterhifi.com/volume_12_4/feature-article-paradigm-tour-12-2005-part-1.html). Sure it's just one guy's take on the company, but surely there is much to be said about the detail they go through to produce a high quality product.
And there was a comment (not by you, Kris) about 'Made in china' somewhere in this thread.. well, Paradigm is one of only a VERY few that MAKES everything they use in-house (not sure about the amplifiers). So that comment couldn't be any farther from the truth.
But interestingly enough, when speaking to a local dealer of Paradigm/Anthem gear, I asked him how the Anthem amplifiers faired. He's a very honest guy, imho, kinda tells it like it is. He said that he has had problems with Anthem gear. Great amps, he said, but he's seen a fair share of them needing repairs. Enough for him not to recommend them to me when I was so eager to buy them.