That's not too bad. I'd just pay the $1200 at this point, get the car fixed and enjoy it. I know how these dealers are, there not gonna do anything and will just piss you off even more.

Or just drive it till the new warranty is covered and try then. You will get the run around again, that is just the way these business's operate. At that point you might even wish you paid the $1200 to get it fixed right from the get go.