So if I understand this story correctly, you weren't witholding blocks deliberately you had faulty hardware.

BTCGuild (eleuthria) informed you of this after he noticed what was happening and your hardware was then fixed to work properly

The btc that eligius is witholding is from the period before btcguild when your hardware was faulty.

If this is the case I think he's correct, your hardware would never have solved a block and therefore isn't eligble for pooled rewards.