Summary: It's a repeat of everything you've already read here. Altec really dropped the ball with this product. Really was hoping it would work well, but dock/speaker connection was poor well withing stated working range. Good idea, poor execution. There are better products out there; don't be fooled by the seemingly great Gold Box Deal ($99 for me). In addition, box I received was very dusty and had been opened previously.
Summary: We plugged this in on Christmas 2010, got it working with our iPhone and everything worked fine minus a few small issues with the wi-fi signal. After about a year there was a problem with the system muting and playing no sound. It would do this periodically after playing Pandora through the iphone for a while. Then it got to a point where it would not play (would say it was muted) and then poof it won't work at all.
Summary: The review below is in reference to the product only. As far as the merchant/seller is concerned, I was happy with his price, delivery and packaging of my order. I normally buy from Tigerdirect/CompUSA, but oddly, they were out - so I bought from a trusted seller. My wife and I have been listening to Pandora so much lately that we rarely use our stereo or ipods.
Summary: I have now returned my speaker system for replacement twice in 3 months. The first one I received died within a few days, and was promptly replaced by Amazon. The second one died bit by bit, losing more and more functions until it became clear that it was no longer usable. That took 2 months. I have requested a replacement unit again because I love the idea of it and the sound of it, and I am hopeful that the third time will be the charm.