Before you return this player to the store there are a few things you may want to consider. First the tech support agent you spoke with is not entirely correct.
Transfer rate of the clip+ will be slower than the older products. This is expected behavior as the newer sansa line uses a lower cost slower memory than older products used.
You also mentioned on your call with tech support that the battery icon never stopped blinking. There are several people with this issue so it seems to be a bug in the current firmware.
You also mention that the Clip+ will shut off when connected to the computer. When the Clip+ is connected to the computer the backlight will time out and turn off. This is to preserve the OLED lifespan.
The product you have very well may not be defective.