Thanks for the quick reply SHOdded! I found the "warranty status" info from the TSB below...I agree that it certainly seems like it's part of the drivetrain, but this may say otherwise? I'm certainly not trying to argue with myself either.

I called him back and challenged them on the total and got the diagnostic time etc...I mean truthfully spending $190 at a dealership actually seems cheap these day - it's just the principle of wanting to be treated fairly. I always give them my business on driveline fluid changes etc. (other than oil which I do myself) and am a pretty good customer from a "margin" standpoint. LOL They did come back with a discount of $15...
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WARRANTY STATUS
Eligible Under Provisions Of New Vehicle Limited Warranty Coverage.
Warranty/ESP coverage limits/policies/prior approvals are not altered by a TSB. Warranty/ESP coverage limits are determined by the identified causal part and verified using the OASIS part coverage tool.
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