I had heard tales of the uppipe precat destroying the Turbos, especially from tuners .... so I guess I'm not that shocked to hear about your misfortune .... I hope everything gets solved. I guess it depends from dealership to dealership and region to region how you get treated. I heard the same thing is happening to the EVO guys, they are getting screwed on legit warrenty claims ....

 

My answer is to gut that up-pipe! Looks stock, and improves spool up. That is only a cold start cat, in order to meet ultra clean EPA standards, and is a bad design. The STI eliminates it.