ignore the haters Sleazy, I feel truly bad for you... these scumbags rely on cheating and stealing to make a few lousy bucks while the persons that worked the hardest to make an honest living get fucked.
Like Dave already said, this will continue to hurt this market... surfers will stay away because of things like that and this is a serious threat to anyone in this business.
I'd say hit them with everything you got... get some good ecommerce lawyers that know what they're doing and make sure you get every sucker that participated even remotely in this hijack. Make sure you pick it up with every authority that could do anything about it.
For now good luck with getting the site down and the domain back, I doubt there's anything I could do for you but I will always help if I can
