Hi Camryboy, try this - in the UK we have a Council run department called "Trading Standards". It is the link between the seller and the person who has entered into a contract by purchasing goods, which =you/your friend.
In the UK, if new goods fail to work, they are deemed "not fit for purpose", they can be sent back unless the problem is sorted. In the UK, I would be saying to you ring "Gateway" and speak to the Customer Services Manager, tell him you are recording the converstation and after seeking advice you are giving him 7days to sort out your problem once and for all. Also sending a letter, recorded delivery to the same effect. Apparently in the UK you have to give them time to rectify the issue.
By law, we the "purchaser" are covered against things like this. In the States I obviously have no idea of what the department would be called. Also -was the purchase made by credit card? If so, get in touch with them also a.s.a.p. They may be able to claim the money back under Gateways neglect.
Simply put, they cannot refuse to sort this problem out, if you need to send the whole thing back..
Hope this helps..