Ring up consumer affairs or whoever deals with this sort of issue and explain to them you where given the impression that over $1000 of required maintenance was carried out and informed otherwise after purchase. They provided the warranty at point of sale i dont see how they can reneg it when they issued it knowing the service had not been performed.

Your at a stage where you need a governing body to give you facts about what you can and cant do about this. I wouldn't call it plain old false advertising but you may have a case and while its all good discussing it here they can help you get the ball rolling on the next step.

Personally id look into having the service done for free, i think its fair as it could have swayed your decision to buy the car if you had known it hadn't been done. My guess is they are just huffing and puffing to try to get out of wearing the cost of the gearbox.

Best of luck i hope you get a good result

Photocopy the appropriate pages the book "just in case" it goes a wandering.

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Beaten up old 98 Gen 2 Liberty, 13.0, stock V3 STI running gear.
07 Transit motor home
69 VF & 70 VG Valiants needing full restoration
Yamaha Zooma 50cc rocket hopefully going with the Transit.

Goodluck, one of the resons I can't stand dealerships.

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F1 Inspired