Opinions requested on receiver repair options(long)

It all started about 2 weeks ago when I was reading another forum where the discussion is devoted to my favorite receiver, the Sony STR-DA777ES. It was noted that there was one on Ebay so I naturally looked and saw that the price was reasonable so I won the bid. I asked about the original box and it was not included but an assurance that it would be "well packed" was stated. Well, as anyone who has dealt with electronics and UPS can attest to, the box arrived last week in pretty rough shape but intact. The inner box, however looked pretty good, at least at first. The seller had jammed the 777ES into a DB940 box so it was tightly packed. But UPS had managed to apply such rough handling that the volume knob had been forced through the inner box and all the way to the outer box. This resulted in the volume knob being bent in and causing the outer case to buckle on the right side.
Needless to say I was shocked and angry. I personally don't think it was packed sufficiently. I did pay for the UPS insurance to cover what I paid and am currently waiting for an adjuster to come out and assess the damage. I'm not real optimistic that they will come through with a solution.
My question is this: would you even entertain the option of having this receiver repaired with what must have been quite a blow during shipping? It still has 3 years left under warranty but I'm sure that is in question now with this damage. I'm not as fussy about appearance as I am performance and I don't know what else may have been compromised inside.
Thanks for letting me tell my sad tale and would like constructive opinions as to what my options might be. I do like Sony ES so please refrain from brand bashing.