Sony / DSC - P 200 Warranty Void — Warranty Dishonour for DSC- P 200

I purchased a DSC P200 Digital Camera( Serial No 2655002) From UDAY SONY DIGITAL STORE( A Division of Karthik Business Machne), #35 MAHATMA GANDHI ROAD, BANGALORE on 06/03/2006. This Product has 3 year warranty on it.
On23rd August, I found that lens of the camera got stuck, set was not powering ON and I took it to the Sony service centre at INDIRANAGAR, Bangalore branch on 25th August 2008. They gave me the job card number ( Log Information[protected] and said that someone will call up at the number provided within 48 hours. They called up after 72 hours and said that it cannot be repaired as the MAIN BOARD is corroded and the replacement cost of this board is more than Rs.10000 approx.. Hence, it is not feasible to repair.
Hearing this, I asked them that the Set is still under warranty, they said that they will look into the matter. I spoke to Indiranagar service branch and dissatisfied with his answers, I came out. After talking to their Customer Care number several times, I got fed up as every time I had to explain all the executives about the problem and I wanted to have word with some Technical person or some body responsible in their organization. Finally, I got a call from their side and they still repeat the same word " Board is corroded" and they are saying that it doesn't come under warranty. I asked for the image of the corroded board so that I can proceed further, they were not having any reply. Still my faulty Digital Camera is with them.

Following are my concerns:
Since the Camera is held with them, they may do some nasty thing to prove that the Board is corroded. As I asked for the image and they haven't given me.
If the Set is under warranty, it is their responsibility to either repair / replace the Board.
As the replacement cost is high, they would be trying all the possibility to proof that the warranty is void.
In this regard, What is the genuinity of the service centre that they will not follow any sort of malpractice. Also I had heard that whenever the cost of replacement/repair goes high they try all the unethical means.
Also I have asked for the image of corroded board, which they are yet to provide.
How am I going to get the repair/replacement for my Camera?
Customer care doesn't provide me the information which I seek, they always try to put you on hold and later on say that they will arrange a callback, which was not done earlier.

Please takeup this matter, awaiting response.
Ashish