Update.
I talked with Frankie from Image Dynamics a few more times today. He volunteered to be a mediator to this situation and made contact with Woofersetc. to find a resolution, and more importantly, what exactly was submitted to Paypal. From what I understand, Woofersetc. hasn't provided that information to him. I was not told exactly why, but you can use your own imagination.
However, he did get Woofersetc. to offer the following resolution which I am taking, still knowing that they wronged me to begin with. Woofersetc. is paying to have Image Dynamics send me another subwoofer.....brand new. Woofersetc. is also suppose to be refunding the shipping amount I incurred to return the sub. Therefore, I will end up with a new subwoofer for the original $250 price I paid.
Overall, Frankie (Image Dynamics) went above and beyond anything he needed to do; or anything I expected him to do. I now feel that Image Dynamics did not cooperate in this scam, unless the information I will eventually obtain from Paypal tells me otherwise. I don't think anyone at Image Dynamics knew anything about this until this thread was brought to their attention.
To sum this up; I was screwed, and now I will be made whole. It doesn't make up for my time or this huge mess, but I appreciate being made whole.
Once all that was promised is received, this mess can be put behind me.