cyberlink may be willing to work with you on upgrading to their upper versions for some additional cost.
there arent going to be any legal free programs as the license required to play blueray costs money. the only way to get it free is if you had software included with your pc or blueray drive (which some manufacturers do as a bonus).
Yup. Not sure about where you are, but where I am retailers start to get very worried and apologetic when you mention the Consumer Guarantees Act. Find out what the relevant legislation is where you are.
Due to marketing idiocy, the three versions of the software are Deluxe, Pro, and Ultimate. Deluxe can't do blu-rays; Pro can but not 3D.
Your blu-ray drive may come with a key for some blu-ray software.
Due to pirate concerns they aren't going to refund your money with open box software, for obvious reasons. The retailer or program manufacturer will most likely offer you what you paid for a an exchange or upgrade.
Even though VLC is great, I prefer http://mpc-hc.org/ which offers better quality but does have higher rates of errors in terms of starting a movie.