Making a team follow a method they don't like is a recipe for disaster no matter how well or poorly everything else fits. Sorry to hear you're in that spot. Try to negotiate terms that allow the team to modify the process as they go and see if that makes them more willing to give it another chance.
My old team found some tasks didn't work in 2-week iterations. They took too much lead time or had dependencies on other groups with, say, quarterly deliverables. You might try to move the "reproduce the bug" problem outside the iteration, saying a customer can only schedule a bug-fix story for an iteration after it's found to be reproducible. There might be a separate backlog for "bugs to be reproduced" that works in priority order, but without the tight iteration schedule.
Look for Dave Anderson's
Agile Management blogs & books. He runs a Kanban system that pulls stories for execution in order but with no iterations or release plans. On the regular release dates they ship whatever is in "finished" status.
[ November 04, 2007: Message edited by: Stan James ]