Finally some resolution.....I spent the better part of the day today down at MPI. About 2 hrs just waiting for Mac to come in. I was very impressed with his willingness to talk the whole thing over with me. He spent probably an hour and a half going over the deal and explaining a whole bunch to me. He's a smart guy. He came to the conclusion, and although I hate to admit it, MPI is not responsible for the failure. The Bulletin that was issued relating to the Blower Oil vent was for the Nytro although in extreme cases it could affect all models. My local dealer never did any Nytro installs and this is why Mac says they never got the bulletin. If the instructions were followed the vent line wouldn't be on the belly pan where it could slurp water. My vent had been swapped out for a longer hose and was laying on the bottom of the belly pan. This was a mistake made by Tj's and if there was any liability it would be on their part. However, based on my personal experience, and the reputation of TJ I don't think there is any negligence. I am going to assume that they put the longer hose in for some reason thinking to solve some other issue, not knowing it would lead to this. After all lets not forget that Troy was "one" of the guys responsible for making these run so well in the mountains. TJ went to bat with MPI last year for me when my blower failed even though it was technically out of warranty and got me taken care of. Sometimes crap happens. Now that a few days have passed I can look at it a bit more objectively and realize that sometimes things don't go your way and its gonna cost.
Mac was very fair with me on getting replacement parts, and I should be up and running in a few days.
