Sorry to read about your experience and I'll be interested to hear what the more mechanically adept have to say about salvaging this bike. I have been riding an '02 for a year and a half with good results. I probably average about 60 miles a week and the only problem I've had is the headset needing to be tightened up once in awhile. I am hoping to upgrade the headset and, eventually, the bottom bracket.
I am in Vermont and would be interested in buying your frame if you decide to abandon it. I'd like to build up a backup bike. Here's a mailing address if you decide to go that route: 1383 Rt. 44 05037. Good luck either way. Sorry I don't know enough to answer your question.