I took the bike back to the LBS friday morning. They were suprised to see the bike like that but had no problem getting a new one for me since it was clearly a manufacturing or assembly defect. I don't know yet when I'll get the new one, they said they need to contact the bianchi rep and it being a holiday weekend... However, they gave me a loaner to use in the meantime. It's a Cannondale CAAD5. Seems to be a better road bike then the Volpe, but definitely more fragile. I went for a 40 mile ride on it today and my neck and back were killing me. The bars are too low on this thing, I geuss everybody wants to ride a racing machine.

Thanks InAbsentia, I'll be sure to ask for a chain upgrade when the new one comes in. I also plan on having them go over the bike with a fine toothed comb just in case.