Hi Wayne,
That is the exact situation my parents were in - purchased in May from B&B ($199 special). Then it started rebooting and after a few times went to GSoD. My sister took it back to B&B and after a week or so got a replacement, about a week ago. They did say that it was the 'last one in the country'.
If you are in Christchurch (or willing to pay shipping) I can replace the drive for you, it's quite easy. I can even test if that is the issue before I put a new drive in.
Perhaps B&B would give you a partial refund to cover the cost of the 'repairs'.
Cheers,
John