Yes there are freshly generated coins entering the wallet the refunds came from. That's not a covert mining farm minting coins to refund. That's your hosted devices up, and running. Hosting is live. The issue is configuring the API to your accounts and that is being sorted now. So those minted coins, approx. 175 were put towards the coins creditied. However the total credited will now equal 380 BTC today, so that's 205BTC paid from KnC themselves in addition to what's been generated. There a few additional coins to credit today as there was a mix-up with some guys in possession of multiple miners that were overlooked by mistake and that's being rectified. Hopefully you will be able to access your accounts very soon, but the pool works. The fact is each board has an individual owner and that owner has to be able to configure certain aspects of each board, choice of pool etc. You are therefore not given a proportional 'virtual' share of what's hosted, but actual physical and configurable boards located in your own physical space in the hosting center; i.e. your own board(s), and thus these need to be individually assigned, and that is considerably more laborious than originally expected.
Why don't they configure the miners to point to the pool/addresses configured in the account while we wait for the software/routing to be resolved? They had to configure them somewhere, it just doesn't make sense given the information provided that they would point them all to their own pool account when it would have been just as easy to use our configuration and avoid the whole refund issue entirely.
I think what he was saying is that pool users configure their own mining scheme and using the pool, the pool gets a percentage and that percentage to the pool is what is being used for the delay refunds. I suppose they would like to configure the miners for the users the best way possible as that would mean a larger amount as that fixed percentage - success of those in the pool is good for them. But, given the type of people we miners are, we'd probably complain if we couldn't make our own choices even if not optimal.