Wanted to get back to everyone regarding the outcome of my exchange. Thankfully, the Wolf camera out here gave me no problems exchanging the original w/ a replacement.
In response to some posts about the image being underexposed, the are absolutely right. I agree, the image is very under exposed..however where I came from (Canon 30d) this would not be an issue. Yes, there would have been noise and yes it would have probably required post processing to clean it up. However, the pattern is what made me upset with the situation.
I am not saying the 30d is a better body, I did change to the Pentax for a number of reasons (IS in the body, the weather sealing, cost saving on glass compared to replacing lenses to IS version etc)
I have taken more test shots, and when properly exposed, the pattern is not there. If underexposed, I can still see it. If I was planning on shooting night time or gymnasium sports any more, I would probably be switching back to Canon.. However, most of what I derive pleasure from is landscape and portrait work which 1600 is not really a necessity.
I am sticking with the K10d in hopes that Pentax will release a firmware upgrade that eliminates this problem. I did send them an email off their support page and have heard nothing back. I am hopeful, at some point they get back to me...
So, I am going to order some new glass tomorrow and am anxiously awaiting the release of the Tamron 70-200 2.8. Amazon has it listed for 699 which is one helluva price..if it is as good as the Canon 70-200 it is replacing..
Thanks everyone for your feedback and hopefully sometime soon I'll have some images to share!