Sorry for the long lag time. Had a hard-drive crash and needed help to get up and running again.
About the engine. I had a friend of the family who is the head of another ford dealers service dept. quote a much friendlier price for the engine. I told the original dealer that I would like to get the work done elsewhere due to the discrepancy in price. After a little bit of consideration, the dealer of purchase met the same cost and my price was $765 out of pocket. I am very satisfied and the talks were almost friendly even. I agreed to have the swap done at the most convenient time for the dealers shop and am driving it right now with an epoxy, temporary, fix. Everything has been documented and is in writing. It pays to be informed, firm, and open-minded. I got a fair resolution to my problem and I would incourage others in a similar situation to remain calm at all times. Consider your options, think things over, do some comparisons, and talk to the people your dealing with.
Many thanks to the people who replied to my treads regarding this issue.

MoJoWales