Finally received my formal offer from Lexus. In spite of the fact that they are insisting that it is a voluntary repurchase, they are using the MA Lemon Law formula in computing the payment. Basically they're paying me what I paid for the car in August 2006 plus any associated fees (sales tax, registration fees, etc.) minus a small amount for miles driven. I'm very happy with their response. It took a year of complaints, but when they decided to take action, it moved fast. Suddenly I'm a great supporter of Lexus, but won't be so quick in the future to purchase one without a thorough inspection.
For all of you who have a state Lemon Law, use it. I get the message that Lexus will settle before the case reaches the adjudication state. Good Luck