FYI, my brokerage house transacted and settled my DDI shares on Dec 28 so the distribution is a 2011 item, but with no tax impact.

My actual cost base for DDI shares was reflected in my account at $0.00. As a result, I am interpreting this to mean that the DDI shares were a return of capital from KWG and so have a zero cost. I don't plan to change it or my KWG cost base unless my broker runs some form of adjustment entries effecting both through my account in 2012. Afterr all they should know what they are doing. I will post a notification here if that happens. But for now, should I sell DDI I will simply have a capital gain equal to my proceeds, with no effect on my KWG situation.