Well, I finally got off my rear and sent my K-1 in to Precision Repair. Very quick turn around by them (about a week) with their usual cryptic note "complete repair and return all functions to factory specs." Bottom line is that their quote of $312.50 when I sent it to them was the final cost - no surprise on this either.
The camera works again and that meets my real need. They did forget to include the camera battery even though they inventoried it. That will get resolved tomorrow.
Did I try to get Pentax to pay for it? No, given that I bought it second hand and had no warranty, I just bit the bullet and got it fixed. I kinda feel mixed on that. Pentax should have acknowledged it as a defect but they didn't. So, I'm just moving on and going back to shooting pictures with my excellent camera.
Read more at:
K-1 mode dial failure - PentaxForums.com