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I've had a couple engines replaced in cars. The only advice I would give is to inspect the crap out of the engine after they replace it. If you don't know anything about engines, then get someone else to inspect their work. You are looking for loose/disconnected hoses (these can be buried deep in the engine). stripped bolts, cracked or broken straps and plastic connectors, etc...
It may be something simple that you don't notice for several years until after you've moved and/or the warranty is up, but it will still piss you off. Four years after (and one 500 mile move) I noticed that a dealership had somehow stripped off the head of a bolt on one of the engine hoist hooks when replacing an engine (weird huh?). It didn't really effect anything unless I ever wanted to pull the engine again. Remember that nothing is too stupid to inspect even the engine mounts, transmission bolts, yada, yada, yada.
I'm also not sure why people want a car with a warranty if every warranty item is cause for asking for a new car? I'd be happy they were not trying to nickel and dime the fix. If there is a lemon law requiring car replacement if the fix is a certain dollar figure and/or time in the shop (say 30 days) they could replace just those parts of the engine making the noise and take up to 30 days to do it. Careful what you ask for, they may comply.
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