thanks to everyone in this thread offering support, very much appreciated help ! (chris thanks for all the details!)
It's the weekend, so dealing with the 2 registrars is a pain in the ass. I'm basically waiting until monday morning to continue resolving this. I didnt even put my head on the pillow thursday night .. I think I logged 14 hours on the phone that day
The domain was locked and they hacked the admin email even tho it was a strong password, then initiated it from there I guess. Time to privacy protect all my emails I guess I should have had this done before. My password routine is pretty flawless so I am really wondering what happened here. I never use unsecure networks, only strong passwords, never a duplicate password.....

We are still looking into cross referencing IP's and other stuff.
I think I'll have to call this lawyer too. I'd like to sue the piss out of this person or get some criminal charges on him, when we find out who he is. Hopefully he's on this continent. Anyone got any good hook ups with law enforcement ? Or a good way to get behind domainsbyproxy info? Looks like I will need a subpeona but thats not quick process I don't think. Hopefully I can resolve this from the registrar level soon.
Thanks once again,