I had the same issue and had to send mine back to Kobo. They said they'd send a refurb but actually they just sent me a brand new one (and I don't have the extended warranty). Maybe I'd wait and see what you get back before getting upset.
I did have to pay for shipping, but it was just over $2 via Canada Post. Got to them in less than a week and had a new Kobo about a week later. Not a terrible turn around time; it would have been nice if they could have charged me a deposit fee and shipped a new one immediately, but not terrible in any event.
