Sorry if I didn't catch it, but it sounds like Litespeed didn't even get this frame in their hands for evaluation. Moreover, they didn't have a replacement frame stocked for warranty. I'm sorry, but this is a piss-poor company, from the sounds of it. If they were at all reputable, they'd take your broken frame and immediately ship you a stocked replacement; its very important that they evaluate how the failure occurred.

Very, very bad. People will bash Specialized and Trek, but they do right by their customers on warranty work.