So I just had the warranty work denied because of modifications.

All I have on my car is:
Eibach R2 (I believe the external reservoir scared them)
Robispec rear tophats for more suspension travel
Robispec front control arms
HKS drop in air filter
Sound tube delete
Stainless steel brake lines
Carbotech xp10 brake pads
JDM exhaust tips
Hankook RS3

As you can see no modifications unless you want to argue the air filter and sound tube delete, everything towards the engine is stock.

Subaru tech line said they had never heard of this issue. My dealer is asking me to give them 150 for the engine teardown to find out the problem and I am sure they will find a problem and after they do find a problem with the injector seals they will warranty it and it will cost me nothing/refund 150. That is if they don't play any funny games and try to screw me over.

Question is should I buy the parts and fix it myself OR pay my dealer the 150 and have them find the issue (if they dont try to screw me) and refund me my 150 after they find the injector seal issue and perhaps document it to help hurry up the posting of the TSB.

Don't trust them. They will most certainly take your money. Make them do the tear down on their own dime. Under the Magnuson Moss act (with is federally enforced), they cannot deny warranty work unless they can prove the modifications caused the problem. Seeing as it's clear as day that this is false, they'd lose.

Also, I think you need a special tool to swap the seals. One that only dealers have right now.

I say push back, threaten law suit.

Wrong.

Magnuson Moss only covers replacement parts; oil filters, air filters, spark plugs, etc.

Automotive factory warranties only cover manufacturing or design defects. They don't cover any other failure; abuse, accident, lack of maintenance, etc. Warranty coverage can be denied for many things.

I'm still confused as to why everyone's panties are in such a bunch...everything posted here as to why this engine failed is just a wild guess until we have some facts. Everything else is just workbench guesses and accusations.

Pretty sure the direct injector seal failure due to insufficient/faulty ECU mapping would fall under the "design defect" umbrella, as evidenced by Toyota's TSB acknowledging as much.

This.

Considering how this car is marketed, I would say that a motor failing under marketed use is a design defect.

Except the engine that failed was in a Subaru...not a Toyota (Scion), there is no concrete evidence that the Subaru mapping has, or had that same issue.

Now you're just being silly. It's the same mapping. Subaru has apparently already released updates in other countries that change the mapping as @epifan or @mad_sb has confirmed with the Japanese romdump, if I recall correctly.

Are you suggesting that there is a difference in mapping between the 2 cars?

That seems like a pretty far fetched idea...I'm not going to claim there won't be differences in how the Chassis control module may function based on different trims/available options,

Perhaps even different access protocols (which seems to be disproven since techstream works on BRz's...)

But it seems highly illogical that subaru (the manufacturer of the vehicle like it or not discuss elsewhere) would put safer maps in the Toyota's and Knowingly ship their cars with incomplete ign. retard tables...yes i am aware that the DI system comes from Toyota, I also would tend to believe it would be in toyota's best interest not to destroy a bunch of Subaru motors that say Toyota on the engine cover...

We all understand that they are separate companies with their own rolls of red tape, but let's not pretend like they aren't the same car at the end of the day....including the same motor and the same ECU.

BULL

Your car is at Irvine? They did our first engine, and I will be MORE than happy to get you a copy of our repair order.

I'm simply saying that Subaru has their engineers, and Toyota/Scion has theirs. There are TSB's that apply to one of the twins but not the other so it would seem that there are differences including the mapping that could be different.

I wouldn't just assume that everything except the front bumpers and the trim levels are the same.

South Coast Subaru. Can you email it to me? I am there right now. About to go talk to them.

It's not something that I have on hand... I'm at work >.<

I know Ferdie is aware of the problem, and he's told me that they've done several of these already, and this was last year...

Pardon my ignorance, but what exactly went wrong with your car?

He had the famous "firecracker popping" noise from the DI collar failing. I'm going through the same thing right now with Toyota.