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Sad to say, I'm not surprised. I always wince when I hear a set being shipped. It can be done without damage but the track record sure isn't good. You have to remember that it WILL be dropped. I joke with the clerk at the post office that I mark my packages "fragile-glass" not to prevent dropping but to prevent them from running it over with a truck! The best you can do is overpack it. I have a 15" portable I am preparing to ship. The box I'm using once held a 25" color TV. Lots of room for padding, but a big box. (too big for the post office)
As for the insurance, it seems you have nothing to lose for your troubles, provided they don't require you to turn over the set to them.
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Bryan
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