I love my old isight, I use it to death still, using iGlasses of course. Can't beat an isight for macro-cam.
The plug was all that was damaged. I'm sure it was dropped into some liquid while plugged in and left there for awhile.
I love how the customer played innocent, acting like this was a manufacturing defect as though the sheer devastation to the connector wasn't noticeable.
OT: my old isight has a stuck pixel and is starting to get iffy on detecting on firewire. I may have to find myself one on ebay. I've seen them for sale NIB on occasion. Anyone know of cheap sources? I was gonna claim my mom's when I got her the new imac with the camera on it already, but she too likes the isight...