So.... I liked Kagi more then they liked me. Apparently my ambitions aren't big enough for them as they declined to take me on as a customer.

Ergo, its back to Digital River.

With some more poking around I found out that oen of Digital River's other services also does digital distribution-- RegNow. Its more expensive then the service I was looking at (SWREG), costing me about $1.70 per sale BUT for the convenience of not having to worry about setting up my own distribution server, I can live with that.

Unlike Kagi, they take all comers so being rejected isn't an issue. The only problem I've run into is that RegNow seems to be built solely with software downloads in mind. This wouldn't be a problem except that there is no way to tell their system your product does not fit into a "software category." I've sent them an email asking for more information about that. I'll report back what I find out.