Originally Posted by FairladyZ
I think a proper bleeding is what I need.
Is this type of thing covered under warranty? Or should I expect to pay a fee to get it done?
Get a good brake bleeding with ATE Superblue, Castrol SRF or similar fluid at an independent shop, it doesn't cost a lot (<$100 normally).
Then go do the proper bedding in procedure, as shown here: http://www.zeckhausen.com/bedding_in_brakes.htm
If this doesn't cure your problem, then you will need to get it diagnosed at the dealer and somehow reimbursed by the insurance company, hopefully.