I had a different experiance with the extended warranty company. My out of pocket was $300 on 2k+ bill.
Sorry to hear of your bad luck. Something doesn't sound right though. I know there are somethings not covered by the warranty, and some that are. Did the people doing the work bill you for misc. crap? The cost of the engine plus the labor to install, should have been covered under warranty. The only way they can weasel out is if they can prove you had a intentional hand in causing the failure. Did you drive it for a period of time with the CEL light on?
Try to sue in small claims court. If they don't show up you automatically win.
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Today's Featured Article - George's Fordson Major - by Anthony West (UK). This is a bit of a technical info to add on to the article about George's Major in the "A Towny Goes Plowing" article. George bought his Major from a an implement sale about 18 years ago for £200.00. There is no known history regarding its origins or what service it had done, but the following work was undertaken by Harold alone to bring it up to show standard. From the engine number, it was found that the major was produced late 19
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