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Could not try it
As that userid and password did not work, but I'm afraid at first blush I think you may be attacking some of the wrong problems. Peerflix has some problems but you'll have new ones.
The $1.39 cost of Peerflix per trade is not a big issue. It's already well below the cost of other services unless you are a very heavy user (the kind Netflix doesn't want, actually!) I haven't run into the fraud problem though I could see it being an issue. I don't know if it's worth the added cost of the double-mailing and the inspection. Something pays for the extension. I would rather have a company I pay that works for me, compared to a company that is paid by advertisers and thus is always tempted to work for the advertisers.
I believe most users probably find Peerflix too complex, compared to Netflix. One of Netflix big wins is you can go to your computer once every 6 months to list your movies if you want to. A computerphobe can use it. Peerflix and your service both require heavy use of the computer for every disk in and every disk out. Your complexity is higher because the user might try to figure out a market value for disks they are trading in or out. Peerflix setting prices (based on the prices the studio sets, largely) is a feature, not a bug, in a number of ways. If they set the price wrong, it's a bug they need to correct.
Peerflix' biggest bug right now is the problem of the low demand or dropping demand DVD. If you take one, expecting to trade it back out quickly, you can get stuck with it for months, expecially if you are not constantly at your computer. Fortunately I am at the computer very frequently. I'm not sure Peerflix would work well for the people who are once a day e-mail readers.
A particular curse is that if you take a DVD while it is dropping in value and get stuck with it for a while, the loss in value is saddled on you. I haven't experienced it but with Peerflix I presume some poor sucker takes a 3-peerbux movie and it becomes 2 peerbux before it goes back out. Or does peerflix eat that?
I really don't want to worry about the price of disks and whether I am bidding or asking the right amount. "Just like the NYSE" is great for trades of $10,000 of stock, not for $12 disks. If you want that, you can just use eBay if not for the way people have little incentive not to overcharge shipping.