Blockbuster Express Ignores Returns Buffalo Grove, Illinois

We rented a movie from the Blockbuster Express Kiosk on 3/10/2011, and returned it to the same kiosk on 3/12/2011.  We didn't think to look for a receipt in our email, and never got one, or any reminder to return the movie.  On 4/5/2011, we received an email from Blockbuster Express stating that they were charging us $25 for the movie, since we had not returned it. 

After calling customer service and getting nowhere for 30 minutes, I asked to speak with a supervisor, and was told one would have to call me back.  I left my number and waited.  Finally, 4 hours after the end of our call (and in the middle of trying to put my kids to bed), the supervisor called me back.  She gave me exactly the same answers the original customer "service" rep had: "That kiosk didn't report an issue at that time, so there must not have been any problem".  So, the software that failed to acknowledge my return couldn't possibly fail to report that it failed?

I asked if they could check if the DVD was in the kiosk, and they said the kiosk was reporting that it wasn't there, so it must not be there (obviously hardware and software NEVER fail, right?).  When asked if they could send someone to see if the movie was in the kiosk somewhere, they said they always check, and that since they always check, they must have checked, so it obviously isn't there.

So, somewhere along the way, their poorly written software or cobbled together hardware missed my return, and then failed to report that it failed.  Some guy in charge of checking the machine somehow knew to check for my movie before I even reported the issue, and since it's procedure to check the machine, he couldn't possibly have ignored his psychic command to check for my movie, right?

Now, they are charging me $25 for a movie that they have (and can still rent out and make money from!), and are just assuming that I am a liar and a thief.  Way to go, Blockbuster Express, I'll be disputing the charge on my credit card and avoiding your horrible customer service from now on.