Call customer service at AT&T. It will route you to the Mumbai customer care service center. Go ahead and tell the guy how answers ("Bob" or "Fred") that you need to speak to a manager. Just be polite but firm with them that they WILL provide you a replacement phone. It's worth a shot.

I bought a Sync off the internet for my Mom, and it didn't work. She took it into a local Cingular store, and they swapped it out - no questions asked - even after she told them that she didn't get it from them. No charge, and replaced even the battery and charger. Try you local stores as well. Some stores are more lienient.