Hey Srbl,
Indeed those lumens are bollocks
Welcome to the land of LED torch sellers.
I have several cheap (~7-8 AUD) torches in my house running some form of Cree-like LED. I've only had to swap an LED out once in one and it was because I had destroyed the old one. I learned that the lenses on the LEDs are made of a delicate gel, not a hard plastic or of glass.
The easiest repair would to buy another LED pre-soldered onto its mount/heatsink and swap that in.
Unscrew the front of your torch and have a look at what style is installed -- commonly they look like stars:
Yours will have a couple of wires soldered to it. The other ends of these go to a current limiting/control board, often mounted right below the LED. Presumably this is working fine in your LED and you will only need to replace the LED.
Sometimes the stars are obscured. In one of my torches the star is fastened behind a piece of threaded aluminium:
Searches such as 'star led', 'star xm-l' and 'star-cree' work well on a site I can suggest:
dx.com. These can be had for less than $5 Australian (but note that
whole torches can be had for a little more from this site).
I've had a good experience with DX in every way except shipping time. Their complaint ticket system works, they're cheap and for me they have free shipping. There are still other caveats -- if you are buying batteries off dx for example, make sure you read the description well. They're polite enough to give an 'actual capacity' figure but not enough to put the right numbers in the title.
EDIT: Flashlight community:
http://www.candlepowerforums.com/vb/content.php Useful info resource:
http://flashlightwiki.com/Main_Page