wanted to report back that my replacement came back after exactly a week. However, after no status change until half-time I contacted MS. They couldn't tell me much. Then I posted on Twitter @Surface and minutes later the status changed and a few hours later shipped (coincidence? - maybe, maybe not).
I inspected everything when I got it and everything seemed to be perfect (looks new and battery shows full capacity, although that can probably be manipulated). Anyway, only a few days later I just noticed a dead pixel third from top and right. I am bummed... Eventually I will get this resolved but right now I am tired of waiting... Maybe I take the 1hour trip to the next MS Store on the weekend after I call to see if they have the 64Gb RT in stock.
hope you will have better luck with yours
cheers
edit: still the only way to exchange is associated with a 7-10day wait. The rep called the closest store for me and they will exchange it for me when I walk in. Will do just that in the next couple days.