Thank you, David, for your thoughts. I'm just mind blocked on the whole process of providing a repair estimate without ever touching the camera; relying solely on my description of the failure. That is, at least, my understanding based on my conversation with a Nikon CSR.

Having owned a consumer electronics repair company that functioned on the belief that each customer problem/product is unique, I believe that the Nikon policy serves the best interest of neither.

John--I'm not sure the CSR's description of the process is entirely accurate. I think they do a little more than that (like actually verify that it doesn't record images). What they don't do is actually open stuff up (the expensive part) until the repair is a go. But I guess that's just always been my assumption based on experience--where in many cases the estimate indicates that they have done their homework. For example I've sent in a body saying "AF issues" and gotten back "Impact Damage, bent lens mount, ..." with the estimate.--David

One thing that I've not seen mentioned in this thread (though maybe I missed it) is what I've always sort of assumed - There is probably not a lot that the Nikon tech's haven't seen and I'd bet they usually have a pretty good idea of what the problem is based on the customers description and a quick look at the item. Also, I've always understood that the initial estimate is just that - an estimate. While most of the work I've had them do has been under warranty, I did have them revise their initial estimate on at least one occasion after they got further into the lens(in this case) I submitted for repair.

What the initial estimate does, I suppose, is get a commitment for a minimum expected payment before they invest too much tech time. More often than not, the charges do not exceed the initial estimate. Where parts are not involved or perhaps are minimal, I'd expect the much of the estimate is probably based on a per hour rate billed in minimum units (per hour or half-hour, for instance) - which may explain why a lot of different type of repairs seem to cost about the same. But this is just my own speculation based on the way I've seen other businesses charge for similar types of services.

It is sometimes frustrating that Nikon isn't more forthcoming with regard to the precise nature of most repairs and adjustments, but I can sort of understand their wanting to keep some things under wraps.

FWIW estimates seem to come in a small number of possible sizes. B1, B2 and C are the ones I remember seeing the most often. I presume these do equate roughly to some number of hours or hours plus parts (C is a major repair like a shutter, B2 tends to include impact damage, lens mount warps, etc., and B1 is most stuff that is less than that). They don't ever seem to try to itemize the actual exact parts replaced or time spent exactly.--David

In the past I had dealt with the head of Melville service, who has since retired. I spoke today with his replacement's assistant who seemed to understand my position and is going to have the camera looked at and call me back with any additional info that may provide. Progress!

I received a call from Nikon today. I was told they disassembled the camera and determined that the CCD had failed. They also told me that this was a level 3 repair, but they would repair the camera for the original level 2 repair cost. As the technician was told to leave the camera open, I was told, that if approved, the repair would be completed in 1 to 2 days. I agreed and provided Nikon with payment information.
This worked out great. I am satisfied that I made an informed decision and Nikon proved that they still are a first class company that does respond to individual concerns.

John--Awesome that it worked out well. I do wonder what would have happened if you hadn't called & talked to several people. Would they still have stuck with the original estimate or sent you a new one for the $1400 that a CCD can cost on a D2X (or at least that is what it used to).--David

I received the camera, from Nikon, today.

The repair invoice notes:
- Repl image sensor
- repl memory compression
- Chkd Auto Focus Operation
- Chkd Meter accuracy
General Check and Clean

A few quick shots confirmed operation. I shoot some color/focus patterns over the next couple of days.

I'm not clear on what "memory compression" means.

A note of appreciation to all who posted their thoughts/suggestions.