Yep they were.... I purchased 3 of each of the old chess sets for 25$USD each from Lego.com. The minifigs were perfect.
I hope that these problems are accidental, but something tells me its just another case of lower costs, same price = More profit.
Our only action may be to vote with our wallets. The last few years before 2009 really have been excellent years for TLG's Quality and Customer service, IMO... Which makes this stand out even more like dogs b^^.... food.
Edit - Excellent review. I would have been ordering a half dozen of these had there not been issues with the figs! Agree with the few comments re: Shakos. The horses are odd, but expected... the nice surprise is the dagger-monkeys-. Pirate Wench with skirt is unique to this set which is neat, but I will probably obtain the skirt from somewhere else and avoid the minifigs in this