Hi,
Find another dealer. After talking to the manager at my dealership he explicitly stated that you can put as much freaking armor as you want. The lift is a red sign for them because they have to get money from Nissan and if corporate reviews the fix and then finds something, like a 5" lift, they may have questions and give the dealership a bad reputation. See, dealerships live at mercy of the corporate office. Kick backs, special models, etc. is something that you have to earn as a dealer and they don't want to piss Nissan Inc. off. That's why they really value the surveys that you get in the mail. For them to get "excellent" on the survey means that the dealership is going to be treated well. If they have beef with the manufacturer, they run a risk of getting crappy deals on the cars that they get. There is a post on
www.landroversonly.com about a guy being kicked out of a dealership for give bad grades on the survey. Of course, this has nothing to do with this case and I am simply trying to state what I have found out on this subject. If the service manager does not feel like defending you and dealing with this, he can say "no" because it is his say for now.
I don't have a scanner, but I am going to scan my work order and post it here. Even if they do not think that it is going to be covered, they have no reason for not asking you to authorize an inspection. In my case the manager called me and asked for an authorization. I had to agree to pay for 2 hours of labor in case if the damage was not going to be covered by the warranty. The purpose of the inspection was to take the car apart and see what had happened. On my statement it says that they had to do this because the car showed signs of abuse (bent stock skids). Had I decided to go elsewhere, I would have paid $230 to the dealer anyway.
Good mechanics can figure things out. Telling the dealer that you were going up a small hill while in reality you were trying to pull an H2 up a 60 degree incline, is a waste of air. Just say "it broke." If you are a person who talks too much or cannot keep a poker face for 10 minutes, drop the car off at night for an early bird service and in the note state that the diff does not look right and does not work.
Sorry that it has happened to you. I have been through this crap two weeks ago and it was nerve wrecking.