I heard back from Pad and Quill. They said that they have had a problem with some of the cases warping which causes them not to fit as well. I tried to work with mine a bit to no avail and thus am returning it for a new one. I will use the smart cover until a new case arrives. They assured me that they are trying their best to rectify this problem and are not sending any new cases out until early next week to make sure the cases are up to their standards before sending them out.
BTW, I only had my case for 2 weeks and the first week it fit perfectly and then gradually lost its snugness over that time. I never dropped it and I think it only left my house once so it was not a "wear and tear" isssue.
Good to hear stlowe! I just love mine and i don't think i could use my ipad w/o it! at least they are fixing and are aware of the issue.