I am in the process of upgrading my cell. My friend, who is a Costco member, always raves about their return policy, and was pushing me to buy there, but I looked elsewhere. Today I talked to a Verizon rep who also recommended Costco, so I called for a price. to my surprise, the phone I want is $50 LESS than if I bought it directly from Verizon! I am going to Costco ASAP. If things do not work out well, I will post again.
Reasons I was told buying from Costco is better:
1) "Flawless" return policy. Can return in up to 90 days instead of only 14 (although after 14 you will lose your upgrade IF you don't get another phone, as per Verizon rules.)
2) No restocking fee for returned or exchanged phone. ($35 from other stores.)

According to ads, I could get this phone for free from Circuit City, but the Verizon rep warned me to ask what contract restrictions there are IN ADDITION to the Verizon contract. If you are not happy with the phone, it could become an expensive "free" phone, and they require a major credit card.