Hey Jeremy,
Has the Soap Opera network called you yet? They might be interested in syndicating this mess.
On a serious note, I have read through this whole thing and all I can say is this should serve as an important reminder for everyone as to how critical it is to do your due diligence when engaging in ANY kind of business transaction!
I don't know who is right or wrong here, and I won't make a judgement, I just hope you guys can get it resolved with your reputations and credibility in tact. Honestly, it seems like your both good, reputable companies, and I know you are, its just to bad its had to come to this!