Jeremy, it's funny that you mention this as I literally just received a Holga pan last week (2 actually, since I hope to turn one into a Holgagon). I was going to test it out this weekend, but now that you've mentioned this issue I'm hesitant to load film inside it.
Even though the lens won't focus at infinity, did you find that it can still achieve focus at the other settings (i.e. the listed distances for the focus marks aren't correct, but something in the image is still in focus), or is the lens simply a dud? I have a piece of ground glass from a TLR that I might try to use to check mine myself.