I took your advice Ray. I talked to a lawyer friend of mine and he said the same thing too.
The local company washed their hands of the whole thing even though I believe they were the ones at fault. The manufacturer, on the other hand, resupplied new wood which I accepted.
Rather than put the new wood back in our high-traffic living room, I think I'll use it in an upstairs game room that I'm finishing instead. I have two small kids who, along with two cats are really good at trashing the house. I decided to caulk the floor gaps for now and live with it for a year or two as they grow up a little...and then replace the wood with a better (more durable) product or maybe a stone tile. I may regret this by the end of the start of winter when the gaps reach their maximum though.
I'm glad I found this forum because now I've got lots of questions on installation, etc. I've done lots of tile laying before but have never installed wood. I figure I'll staple it down over the plywood subfloor, scratch up the surface with a fine-grit screen and then polyurethane. I have stairs leading up to the gameroom so I may use the flooring on the treads too. I've got lots of research to do