After months of deliberation, I finally got my Nexus 7 (32GB WIFI) from Telur Baharu .a.k.a. NewEgg (www.facebook.com/neweggmalaysia). I opted for COD at their office in Empire SOHO (Empire Gallery, Subang). It set me back RM816, but still more worth it than getting the 16GB WIFI version for RM899 at local retailers. NewEgg also has this 30-day 1-to-1 exchange (or full refund) for faulty units. After 30 days, warranty claim will need to go through NewEgg and buyer has to cover the shipping cost back to the US (approx rm50). Installed the app "Screen Test" and all seems fine.
The default Android version was 4.1.1, and I'd updated to 4.1.2 and 4.2.1 sequentially over-the-air.
After 1st OTA update