I understand your pain. I unload tractor trailer loads of soda all day. There is nothing like opening the door to a trailer and thousands of 20oz bottles rolling out. Looks like the pallet broke so at at least it's not your fault.
Craigslist is always so hit and miss. It seems that either the communication before the meet is just plain wierd or the person at the meet is just plane weird. I hate having to pick up large items at peoples house or have them come to mine. I'm selling a treadmill on there right now and had a...
Looks like someone tried to make it go off by hitting it multiple times with a screwdriver.
As far as steel I don't know. Could be really dirty nickel plated. Have a better picture of the entire case?