Nah i wasn't confused by his words. Basically Moses is overquoting me by about $150 dollars over what AP will sell for the same product with the same local warranty.
You are confused here by his words I think. Grey = No warranty by the original manufacturer. Or with a warranty that is not valid in the country that you bought it from.
Basically a grey item will be treated as an item that no longer has a valid warranty by the respective service centres. i.e. They will charge you for servicing, repairs, defects, etc etc.
International warranty will be honoured (as its name implies) whereever there is an official service centre. Provided that you have a valid receipt.