OK... verdict is in... Well sort of.

The service techs at the dealership feel relatively confident that this was isolated to the magnetic clutch assembly itself. With installation this part alone is still going to cost about $1800.00. The warranty company has agreed to cover that cost, but oddly, is refusing to cover any of the costs associated with the other damage... including hoses and the like. Right now we're sitting at about 200 bucks out of my pocket which includes a 50.00 deductible and SO FAR "70-80.00" of misc. parts.

I sincerely hope that the S/C itself isn't bad, because if it is I'm not sure what happens at that point, but I sure as hell hope I won't be responsible for the original 1800.00 on this "first try". Were it me, I would have just done the 7000.00 repair and get the whole thing over with. The guys at DM Chrysler have been extremely pleasant to deal with though, and my service advisor even called the warranty company to give them a piece of his mind on not covering damages resulting from the original failure.

Engine will go naked for now, I don't plan to replace the engine cover as I am getting rid of the car.