Alright, so a not so dramatic but still satisfactory conclusion to this story. I thought long and hard about doing a bike away type thing, but Winnipeg is awfully small and there's no reason I wouldn't see this guy in a couple weeks downtown somewhere. Also I didn't like I mentioned earlier, wasn't sure this guy was the thief (I think that matters, some may disagree) so I was straight with him, showed him the photos of the bike, and the ad I had posted when it was originally stolen. He said he had found the bike abandoned in a sketchyish area of the city which actually I believe (if you look at his other things for sale, only one or two other bikes , mostly just kids toys and the like) and asked for 20 bucks 'finders fee' I suppose. I passed the offer to my friend who accepted. Sure not a great , or particularly exciting conclusion but I'm fine with it and a bike is back with its owner.
* feel free to lambaste me for lack of 'balls' or what have you