Correct, the failure happened at 49k miles and was diagnosed early during an oil change. Nevertheless the engine was already beyond repair.
I had wisely signed up for an extended warranty which after weeks/months of haggling finally agreed to pay most of the bill.
At the end it cost me around $1k out of pocket, but what the heck, I got a brand new engine for this.

Could you tell me the name of the company you chose ? I ask because I'm
in a somewhat similar situation (minus the engine problem thank God) in that
my 01 Boxster S was a CPO that had the Porsche 2 year 24K mile extended warranty when I purchased it, but it expired this past Feb and I went with Fidelity Warranty Services on a 3 year service contract. My Box has 67K miles right now.
I plan on doing the LN upgrade late this summer when I have the $$$. Sounds
like you made a good choice as to who you chose, even with the haggling you
had to do.

Also, curious as to what they hemmed and hawed over in regards to footing
the bill ?

John

My contract was with Warranty Direct
The reason why they gave me so much trouble was mainly because they didn't want to pay and looked for any excuse in the book :mad:
So their list was like this:
* Well the engine is still running, let's wait until it dies
* If you want us to pay YOU have to pay first for dismantling the engine so that we can have a look
* Neglected maintenance (which was bogus, I had records for every service and it was all done at the same shop, so that didn't fly)
* and the list goes on and on

So generally if you give them ANY excuse to not pay they will gladly go for it, so make sure that you do have your maintenance done when Porsche wants you to and that you have all records and receipts