Even though it was their mess up I decided to send them back. I called them and told the the situation, and the woman I spoke too was so happy and surprised at my honesty. She said she would mail me out a return shipping label ASAP, as long as they do, I'm sending them back. I just feel its the right thing to do.
As an aside, I live on Long Island and VM did step up and credit my sons account with some money to pay for a month of service+ because of Hurricane Sandy. We were lucky that we didnt lose anything except a few days of power, unlike many others more unfortunate than us. It just so happened that it was time for a top up on his account and they went ahead and did it. That was an awesome gesture as far as I'm concerned. We have 3 VM accounts in the family and I'm adding a 4th for my 11yo son.
Even though we're struggling in this still crappy economy, I try to believe that good things happen to good people. I always instill in my boys to do the right thing and I did.
Thanks for all the comments, and all the tips and help here in the forum.
Happy Holidays!!