Update. Tasco emailed me today and said that they have not been able to test the scope in the last 10+ days because the weather in Sydney has not been conducive to testing. They said they are going to send the telescope to someone outside of Sydney (away from the clouds etc) to test, together with a potential replacement new unit they have which they will offer me if my one is proven faulty.
Not ideal but I think the response from Tasco is already million times better than from the retailer I bought the telescope from so I am satisfied, for the time being. When I first contacted the retailer about the fault, he / she questioned whether there was in fact a fault - I could not believe that he/she could possibly suggest that the perceived fault was due to seeing! When given the photographic proof, a third party document describing the exact same problem and a gentle pointer to my astrophotography portfolio to show him/her that I am not a newbie to be fooled - he / she washed his/her hand and redirected me to Tasco. In hindsight, I guess this is really blessing in disguise as Tasco has been much easier to deal with so far.
What I wasn't sure and still not sure at the moment is whether something as new as my telescope should have been treated differently from a telescope that has seen some use. I got lucky my brother happened to be visiting home over Easter and could take the telescope back with him to Sydney at no cost to me. I imagine I would be fuming if I have to pay $200+ in shipping to send the dud back.
Anyway, I wait eagerly what the final outcome is going to be. My cynical side wonders if my posting here may have hurried things along... But regardless, I am only too happy that there appears to be some progress and I really do hope that Tasco will get things right by me.
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