Microsoft pay for and provide the shipping label. So the question is now, who's responsible for chasing up the delivery guy for compensation? Sounds like microsoft are the ones with a contract with the courrier, not the user, they simply put it in a box with a label as requested by microsoft.Perhaps I am missing something but if understand your situation correctly you sent a defective unit back to MSFT for replacement through fedex. Microsoft claims it was damaged upon receipt and they eventually sent it back to you in the condition shown in the pictures. I expect that you did not send it to MSFT in the condition it was returned to you in. How is this a Microsoft issue? It sounds like a fedex issue. Did you not have insurance? I'm guessing you did not have Complete as the damage would have been covered.