Well..... long story
I'll try to keep it short...ish.
I read up on RMA conditions and simply it was a no go, it's only for DOA chips or serious faults, not just that it won't OC very well or the temps are a bit high.
So what I did was, I took it back to the shop and explained to them that at stock clock it needed as much juice as my 3570k needed to hit 4.5! And the temps were bad as well. So they took it and spent a couple days testing it. They called me back in and said that replacing it wasn't an option as the chip was physically working, although they did admit it was the worst Ivy Bridge chip they had personally seen lol. Just my luck!
The guy I normally deal with in the shop asked me what I was gonna do, we spoke for a while and I said I might take a risk, role the CPU dice and buy another 3770k and eBay the first one, the ***** one. Well he offered that if I was gonna do that he might be interested in buying it off me for his personal build. I use this shop all the time and I've spent a lot of money in there over the years and put business there way as well so they're always really good with me and know how I work so they know I didn't stick 2.5v through the damn thing.
Anyway I went home and considered my options. About 10 days later, the guy from the shop calls me and asks what am I doing with it as he wanted it. I asked him to make me an offer, expecting something stupid like 40% off the price I paid. Well to my shock he made me an offer that was only about 15% off what I paid, so after a little bartering I sold it to him for a 10% loss, about £27 off what I paid. Which is more than I would have got if I eBayed the thing. He said he's not too into OC'ing so it didn't bother him, he just needed to save as much money as possible so his wife didn't take his manhood away lol.
So I asked him to order me another one and when it arrived, I bought the new one from the shop and he bought the ***** one from me =D Result!!!
This second 3770k is better, it's not a golden chip but it's definitely better. I've since upgraded and installed a full custom water loop and now with that this chip is stable at 4.6Ghz with max temps under stress testing of 60c, normal gaming, recoding vids and stuff 50c or below, with an ambient of 24/25c. So I'm well happy with that. I managed a stable 4.7 but the voltage jump was too much for my liking and the temps were pushing low to mid 70's so I stuck with 4.6.
And yeah as someone posted above, unless AMD hit the sweet spot and start really pushing Intel in the next few years, I think Intel are gonna get sloppy, well sloppy'er, and not push themselves in any way. I mean the difference between each new gen is minimal, just look at the 3770 and 4770..... a lot of people are reporting between none and 3 or 4% increase!!
I guess we'll just have to live with it =(
Cheers guys take it easy.