I have that same machine, purchased about 4 years ago - used for the first three; now sitting at my girlfriends house as a decorative piece. Similar to
highstrings experience, I had it fail on me once - would not power up. Their customer service sent me a brand new machine as a replacement....Should have sold it then, but at that time, I didn't know better.
Jump to this time one year ago. I'm in Iraq drinking the crappiest coffee I've ever had in my life, purchased from the local coffee shop, Green Beans. They've got nice equipment (La Spaziale 3-group with two adequate grinders (LaPavoni, and not sure of the other one), but the grind is not fine enough, and the beans are stale. After frequenting them daily, I decided life was too short to drink crap coffee...I wanted to have daily the stuff I would get while riding my bicycle all around France and Italy, so I started searching and found this haven - Home-Barista.
After about a month or so of serious research I decided on a QuickMill Alexia w/PID and a Mazzer Mini, which were waiting for me when I returned home in late November. Oh baby, I got very little sleep the first few weeks I was back. Within a short time after following Dave's (
cannonfodder) thread on dialing in a new espresso machine, I was pulling great shots (my standards at that time) with illy coffee

. And within a week I had freshly roasted coffee and was blown away by the difference. Since then, I haven't looked back at all. Yes, it was a bit of an investment, but it is SO worth it!
Here's a way to rationalize your purchase, should you decide to dive in. You're drinking sub-par coffee now, so if given the option, would you pay $3 a day to drink great coffee? If so, $3/day over a year comes out to almost $1100 - the price of a Rocky/Silvia combo w/accessories. Over two years you'll have plenty to spring for a QM Anita/Mazzer Mini or the like. Over three years....well, you get the idea.
So, to make a long story short, return the machine. In the long run, you'll be much happier. Although you can make modifications to it to get better coffee, it'll never be worth the trouble. Take the $$ and use it as an investment towards a set-up you will use for years to come. As many folks will advise, if you are limited on funds, start with a great grinder and fresh beans; use a regular coffee machine if you must to start while you save up for the machine.
Good luck, and keep us posted on the outcome.