"Surely this is a job for the dealer - as the camera was new. Every dealer I know would immediately replace the camera under warrenty - giving you a new camera and then they would take up the issue over the dead on arrival camera with Nikon - while you are off happily using the camera. "
I too know dealers like this BUT not all dealers are and, certainly in the UK, the contract that the buyer has is with the dealer not the distributor. Consumer law is designed to be 'reasonable' and allows the dealer to try to rectify a problem by either repair, replacement, or money back, but enforcing this can be tricky as the consumer has to allow the dealer a reasonable time to fix the problem! There is an awful lot to be said for finding a helpful dealer who doesn't quibble and replaces equipment or loans whilst a problem is fixed. My own local dealer is extremely helpful and has often loaned me gear at no charge just for me to try it out. Costs are slightly up on Internet bargains but I'm more than happy to pay for the service I get.
Although I had an NPS card, I very rarely used it (damaged equipment rather than broken down in fact), but Nikon were pretty good when I did need their services, but as Alex says this only applies to 'pro' type equipment (Canon are the same).