A few months ago, I was told by Rackspace that "We're not responsible for looking after your hardware" after they'd removed, and destroyed, a working hard drive from a dedicated server instead of replacing the disk that had failed, regardless of the price, all hosting is 'bargain basement quality', some are just more bargin than others =)
I know that rackspace isn't responsible for data loss caused by hardware failure or an accident on their part. A number of rackspace employees have told me (on irc) that I'm responsible for my own backups. Perhaps it was a misquote?
"We're sorry for the issues you've had with your server today, but we're not responsible for looking after your hardware."
A drive failed in a RAID1 array so I contacted their support to get broken the drive replaced, they removed the working drive and destoryed it then insisted it wasn't their fault, I even gave them the serial number of the failed drive before they removed it. I do have my own offsite backups of everything, but it was still annoying to have to restore the entire server
Although RackSpace is expensive I have never had anything but great support from them. I recommend you escalate your issue as this extremely out of line for them.
