Thanks for your help ChilliWilli, it IS appreciated. I will post regarding my experience with the warranty as soon as I get it back the first time I take it in to the stealer under warranty. The X was actually in the shop when I purchased the warranty undergoing mandatory repairs that couldnt wait. You must wait 1 month and 1,000 miles after purchase before you can make any claims.
Also, it's the warranty company you have to be worried about moreso than the dealer when it comes to the warranty being honored. The dealer will fix whatever you want. It's the warranty company that decides whether or not THEY want to pay your claim. The dealer only has to check the car out and then get a pre-approval from the warranty company before they fix or repair the problem. If it is covered, they give the dealer the ok to fix it and the dealer charges whatever. If not covered, you're stuck with any repair costs and possibly even diagnostic fees. If the warranty company believes for any reason that your warranty covered issue was pre-existing, they can opt not pay to fix it.
I purchased a smartautowarranty.com thru carchex.com. I just looked at the coverage and its actually 4 years and 60k mi from date of purchase so I'm good thru 2012 and 128k mi! Ok... that sounds a little far-fetched even to me but that's what I bought. It was $2800 with $400 off. I have a $100 per trip to the stealer deductible.
Here's a link with the coverage. I have the highest level of protection available with my mileage. I paid additional for seals and gasket protection, rental, towing and trip protection, and wear and tear which will covers parts that haven't yet completely failed but are on their way.
http://www.smartautowarranty.com/files_c/WA_200711.pdf