collection for old cancelled service

What is the name of your state? WA

My father (who lives in Oregon) recently got a letter from a collection agency regarding a satellite dish subscription (with Direct TV/Pegasus Satellite). The subscription had been cancelled in March of 2002 by my mother (who passed away Nov 10, 02). So I don't have access to the full details of what went on. I understand my parents where not pleased with the satellite service and attempted to break the contract before the one-year period. Mom had written a letter addressed to the Operations Manager in March of 02 explaining their displeasure and reasons for canceling the service. There was some problems actually getting the service cancelled and she had some notes of phone calls with the company as late as Oct 21, 02. Since then we had heard nothing from the company, until my father started to get some harassing phone calls in September and now this collection letter.

I intend to dispute this and found some useful links on this site for doing so.

Can the company attempt to collect on a debt that they had not notified us of for over two years?

Would contacting AARP be helpful?

There is also the issue of the $250 deposit that was not returned after the satellite receiver and dish where returned. Is there a way to recover this money or use it of offset the supposed debt?

Should I contact a lawyer or attempt to resolve this myself?

Any advice would be helpful. Thanks