'03 Xterra Wouldn't Start

So I am heading out for lunch today. I dissarm the alarm system, get in, turn the key, see the warning lights and turn to start. Nothing, everything goes dead. Turn the key back to ON and no dash lights, then remove the key, reinsert and turn once again to start. No dash lights and no starter.

Pop the hood, jiggle the battery cables to see if they are loose. Cables are snug and terminals are clean. Climb back in and restart and now she starts right up no hesitation. My radio presets are gone and my Tripometers have both reset.

So I figure its one of the following;

1. Defective battery
2. Defective Battery Cable
3. Fill in the blank

Any ideas out there. The X is only 16 months old 12,000 miles. I havent abused the battery, however the vehicle was a showroom truck for 6 months and I bought at the end of '03 so the battery may have been abused prior to delivery.

Thanks in advance.

Henry