Took it back the next day and they easily replaced it. Funny thing is (sad actually), when you take the tool in, they just can't replace the tool for a tool only package. Instead, You have to exchange the entire kit. So, yup, get a bad tool and you have to send back a perfectly good battery and charger.
What a waste.
New gun is working great though. Now just waiting to hear about the warrantee on I sent in. Yeah, I can't afford to be without an impact.