Do you think it would be wise to get a replacement or refund? I was thinking about getting a comparable Nikon P90 instead.
I personally wouldn't be happy if a new camera I bought had a major glitch upon opening the box. Doesn't give me a lot of confidence in a company. At the same time, the fact is that it could happen with any manufacturer.
The cameras are very similar but the Nikon has a few additional features that you may consider worthwhile:
It has a 3" LCD instead of a 2.7" LCD. The Nikon's LCD tilts, which many people find useful for macro and close-up shots. It also has a faster continuous shooting mode (15 fps vs. 11 fps).
The dimensions and weight of both cameras are about the same, though the ergonomics may be different. It would be nice if you could hold a Nikon and see how it compares to the Pentax.
Here is a side by side comparison which may help you decide:
http://www.dpreview.com/reviews/compare_post.asp?method=sidebyside&cameras=nikon_cpp90%2Cpentax_x70&show=allI'd read some user reviews before making a final decison.