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This thread should have been over pages ago as it is a pretty open and shut case that the guy should be paid out and the sponsor should change his TOS if he doesn't want this kind of traffic.
I can understand the sponsor "taking a stand on principle" if he feels that the affiliate did something inappropriate, but in this case the affiliate just realised that the sponsor had left an opportunity open, and by continuing to deny that the payment is due, the sponsor is only going to hurt his own business as he is likely to lose more than just the sales from this one affiliate.
The truest statement in this thread is probably Will76 saying, "better he sent the sale to you than to a competitor" (which if I was him I would probably do now)
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