I'm so sorry to hear it. I thought mine was DOA (neither side button did anything) when I happened to hook up the charger and noticed it had arrived with a stone cold dead battery. After a brief timeout, the rest of the day has been rosy.
Just spoke with my rep again. He has approval on he return but no exact date yet he is going to let me know tomorrow. It will be sent overnight I guess, he said that I was the only legitimate issue he fielded today. I would say that the launch has gone pretty smoothly considering the number of watches that were received today.
I thought mine was a defected one when I first turned it on, for about 30-40 seconds whe I first turned it on, the Apple logo was all it showed me, scared me then it booted to the sync screen.