Solid-Vision iPhone repair trouble in Holland 3G

Hi, I just wanted to let you know and read your response on what happened to me and my iPhone.
I just bought the new iPhone 3Gs and showed the personnel at the T-Mobile shop my older 3G iPhone with some minor cracks in the white plastic. They asked me to sent the iPhone in for repair as I did.
Then after a week I got a letter stating the following;
1. The iPone had water-damage.
2. I had to pay almost 50 euros research for repair.
3. I can also have a refurbished iPone returned for 280 euros. In such a case I also need to pay the additional 50 euros for looking at my iPhone. In total 330 euros.
4. No word about my original complaint about the small cracks in the white plastic housing of the phone.
To be honest, I am completely stuck, for weeks now I have been without my phone and the repair service seems totally ridiculous.
Any advice on how to proceed is appreciated or any one else with some experience with Solid-Vision or Apple repair policy.
Thanks for reading about my ordeal, I am a big Apple fan though and am fond of my iPhone. Solid-Vision repair centre should be avoided at all cost and Apple should know how badly they are represented by this company.
Francois
macbookpro Mac OS X (10.5.1)