Repo and Judgement Situation, Please Help

Okay so here is a shortened summary of what I'm going through:

1. Received loan through Atlantic Fin. August 2006.

2. March 2007 I lost my job, but I was able to pay until June of 2007.

3. September 2007 Atlantic Financial charged-off the car loan, but I was unaware because I hadnt contacted them for fear of being intimidated about not being able to pay the loan, and I already felt bad enough about it and at this time I didnt know what charge-off meant.

4. I hid the car because I was unable to make payment.

5. Jan 2008 I received tax refund. I thought I would be able to call Atlantic Financial and catch up on all my late payments. I called Atl. fin and was told they didnt own the loan any longer and to call RMS.

6. Paid Rec. Mgmnt $2000.00 and set up payment schedule to catch up on the rest of the balance , I had found another job, and thought that I would be able to make on time payments once again.( this was before I found this website, and had no clue what I was doing). I was then told my balance was $4,496.00

7. April 2008 was laid off again from new job, so I was unable to make payments again.

8. Hid car again, until February of 2009 when they located and repoed the vehicle.

9. April 2009 I recieved defiency letter stating that I owed 7,695.00 and the car would be sold at auction May 26th.

I haven't received any statement saying how much the car sold for at auction. Then for some reason today I decided to check my Ohio's online court database, and saw that recovery Management(CA) tried to sue me in October 2008, before they repoed the car, but were unable to because they weren't able to locate me to serve me properly. The case was dismissed without predjudice.

I have just moved to California in the beginning of this month (July)


My questions are:

Can they still sue me since the case was dismissed without predjudice?

Although I moved I still resided at the same address until July, and I never received a defiency letter. Shouldn't I have received something?

Also, When they tried to sue me they were only trying to sue me for $4496.00 which is what I was originally told I owed, but the initial letter that I received after they repoed the car claimed I owed $7695.00 are they able to inflate the price like this?

Should I send them a debt validation letter and give them my new address in California, would they be able to sue me in another state?

I know I have written alot here, and thank you for baring with me. Any help would be gladly appreciated.