"refine the definition of UFO (object not from any [known] Earthbound technology"

And precisely which moron is the arbiter of "known."
The National Enquirer? The New York Times? The NSA? And lets cut this to ribbons while we are at it. How do you look at something miles away and determine the technology? It moved "funny"? Good test. 1 down 11 to go.

"Do we consider UFO's nuts?"

No. We consider people that ascribe specific wholly fanciful/speculative/nonsensical sources to UFOs to be nuts. Did they see something? Possibly. Do they have a clue what is was? No! End of discussion. 2 down 10 to go.

Q3: "Phoenix Incident"
Something happened. Many people saw it. Not one of them knows what it was. Therefore it was from sentient beings in another solar system? That is nuts. I think the lights were created by invisible purple rhinos with flashlights. And with just as much basis in fact as any other speculator. 3 down 9 to go.

Q4 & Q5: "Friend's story"
Is there a point here? 5 down 7 to go.

Q6: "Many people say it"
Many people saw something. No problem with that. Any one of them ascribing a cause to it is a publicity seeker or a fool. 6 down. 6 to go.

Q7: "What was it?"
Don't know. Neither do you. Neither does anyone else. So there is no point. I don't know how the first DNA molecule was created? Should I therefore ascribe it to intentional manufacturing by aliens?
7 down 5 to go.

Q8: "How apply the scientific method"
You can't. There is nothing to apply it to. 8 down.

Q9: "1000 scients = 1000 conclusions"
Not if they are truly scientists. 1000 scients would come to the same conclusion. They would conclude that insuffient information existed to conclude anything. They would likely call for a review of radar data from military and civilian sites, collect photographic evidence, ask airplane pilots to confirm the siting, and try to correlate what they found with other reported sightings. But reach a conclusion? Hardly. 9 down 3 to go.

Q10: "Lets, for fun"
Lets not. Just a waste of time. 10 down 2 to go.

Q11: "Non reproducability"
The method can always be applied. The result will, of course, be that insufficient data points exist.
11 down 1 to go.

Q12: "Different conclusions"
Scientists don't differ in their conclusions. They differ in their speculations. Just like other members of the species. Done!
DA Morgan