Well i tried as you said Eric to do some tests during the day.
Put lens cap on the right lens focused using my left eye turning the centre focus wheel got it in focus (or atleast a half decent image) , put lens cap over left lens and used the diopter ring and tried focusing with my right eye.
One problem the diopter forcus ring wont turn any further clockwise to achive any better focus, the image when i get a semi decent focus seems cloudy/milky aswell.
tried focusing on a roof of a house and im sure i can see two images aswell which leads me to think that collimation is out aswell.
Should of saved my $229 and bought a kiddies telescope im sure id get better images in them than these Bino's!!!
Im very tempted to email the website i bought them from and tell them they just dont work and want a refund