If you bought a bad projector from Sony would you go to Sony to solve the problem? Deal with the dealer.
He probably would deal with Sony, since they will have the projector picked up at his house and serviced in Texas.
But anyway, as I said before, with Meridian you're paying a premium and for that premium the dealer should solve the problem. If the projector and processor was sold with the claim that it would work with a constant height setup, then either the dealer and/or Meridian lied about it. In any case, you should be able to get your money back. The system is simply not performing the way you were told it would. The one thing you shouldn't do is simply sit back and eat up the costs.