Thank you for the response and feedback. Yes, i would be required to pay to ship the TV back to them, and yes i do believe they use that as a deterent and motivation for you to accept their cash offer. I'm going to do some more research and see if i can find proof of what the true market value is for a 2009 Samsung. I think you're right though, $500 might be all i can get at this point. With the price of TVs being so low $550-$800 for a new 42-50in, $500 isnt so bad.
I had never heard of the warranty from Costco's, so i'll check them out. Thanks again!