Paw Paw-Rules- Any Thoughts

Please feel free to chime in on this one.
This was the 4th annual Team Grunt Paw Paw Classic.
The day after Thanksgiving as it always is.
5 Players take the course.
Scores are way tight ascending the final 9 of 36.
Woodshed was played 1st, then The Whipping Post.
Hole # 11 on the Whipping Post.
Player #1 crushes a drive, ( 400 + 30 feet from the temp. basket, player #2 throws a thumber and loses a disc.
Players 3, 4, 5. find there discs and throw again.
Player #2 swears his disc is near player #1's disc. (whom, clearly was looking at a hard birdie on a tough hole)
after 15 minutes of looking for player #2's disc '", Rules commitee, deems, RETEE with a stroke penalty.
The Riot Act Ensues!
Player #2 says, there should be a penalty stroke, BUT with a drop where we thought it was lost.
(Nobody had any idea where it went)(presumably, 200 feet short of where he thought it was)

Player #2 bitches all the way back to the tee!
Takes a drive and Smacks off a tree. Plays another shot after the drive; hits another tree. Picks up disc, THEN decides,,,,,,,,,that his free drop, that he thought he SHOULD have gotten, would be where his next shot WILL BE. Walks up to his "so-called FREE DROP" and finishes the hole. AND then says "I TOOK A 6" Player #1 had a 400+ foot drive and hit one tree and took a 4.

Just trying to get someone else's take on this one.
My other buddy bitched out and wouldn't say anything, but RULES ARE RULES.
After cheating his self on SAID hole, the group decision, was to give him a 10 on the hole, even after knowing he was still fluffing on another hole and be called out on it.
Being caught cheating is a bitch.
But the sad thing is,,,,,,,,,,,,,,,,,,,He would've WON the ENTIRE day at Paw Paw!
What a waste.
Any thoughts? Rules comments definately aprreciated!!!!!!!!!!!!!!!!Please feel free to chime in on this one.

[Chuck Kennedy]

He wsa trapped in the old 2002 rulebook where you used to take your lie on a lost disc at the last point the group saw it. The current 2006 rulebook requires the player to rethrow from their original lie on a lost disc which was the tee in this case.

[eric beich]

and also I believe the other players in the group, when asked? , are required to help look for the lost disc and have 3 minutes. if not found after 3 minutes of looking ( not 15) then the retee is required.

[Jamie 'gr8rocshot' Ruane]

Yeah it's a brutal rule...but it is the current rule. Your buddy should have calmed down, took a breath and dealt with it.

Sound like a rule book is needed in your bag...someone in the group should always have one....just in case.

[moe.]

I guess I forgot to add, that I pulled the rule book out and read it aloud to the group.
He then went back to retee, only to hit two more trees, Then decide the rules dont matter,
and he was gonna take it where he wanted to.
Should have been a DNF or a 999 for going against the group 'eh.

[Jamie 'gr8rocshot' Ruane]

Wow...he should've definitely eaten some humble pie....You and your group were completely in the right on this one.