Consumer Priority Service CPS, Warranty Center #1575 Warranty ripoff has cost me approximately $1900 and counting. Internet

In July of 2009 I bought an ONKYO TXN-R906 home theatre receiver/amplifier ($1900 replacement cost) from PowerSellernyc.com.  They were very pushy about the buying the CPS 4 Year Warranty.  On 5/31/2010 the am/fm tuner failed.  After almost 2 weeks of getting the runaround from CPS I sent the unit to them on 6/15/2010 for Warranty Repairs.  A few days later I received an email by Mike at CPS stating the amp had been damaged in shipment and was beyond economical repair.  They sent pictures in the email.  The only damage was the rear graphics overlay for all of the plugs and jacks had been bent out in one corner.  No impact damage was evident.  From the CPS pictures it looks as if the panel was pried out (no dents or anything that would indicate any type of impact). 

The amp was very well packed.  It was wrapped in soft foam, padded with 1.5" thick sheet styrofoam.  Bubble wrap and plastic air bags filled the space between the sheet styrofoam and the cardboard carton to prevent possible shifting in transit.  I took extensive pictures of the amp and remote control from all angles before packing.  I sent the item by USPS Insured for $1700.  USPS says there is no visible damage to the package so they are denying the claim.  CPS says it was damaged in shipment so they are voiding the Warranty.  From the start I got the runaround from CPS and they did everything possible to prevent honoring the Warranty claim.  USPS now says I have 60 days to retrieve my property or they will dispose of it.  I don't know where it is or in what condition.  I have been ripped off first by CPS and now the USPS is finishing the job.  STAY FAR AWAY FROM THIS COMPANY!!  At this point it appears that my only recourse to contact an attorney to file suit against USPS and CPS and let the courts sort it out.