I dropped my Xterra off at a Nissan dealership on Friday for the FSU recall and to have my tires rotated. After leaving it, the dealership called to say that they could not start my Xterra.

That was Friday. Today is Monday - they finally got it moved from the parking lot into the shop. Their first guess was the starter. After investigating - that is not the case.

Some of the wires from my Viper alarm/car starter had burnt out. A Nissan technician is going to now remove the aftermarket alarm and rewire the system back to its factory settings. I will be stuck footing the bill for parts and labor (as well as the rental car that Nissan was originally going to pay for - as they thought it was my starter, therefore my warranty would cover it).

What is my recourse? The alarm was installed in January of this year at a Circuit City (where it had been purchased). Nissan agreed that there was a safety issue because the wires had burned themselves up.

Do you think I can get Viper (Directed Electronics, Inc) or Circuit City to reimburse me for these new expenses?

I would call both Viper and contact Circuit City, and explain your senario. I'm sure that Viper would be able to help you some

I didn't see this thread. I have been posting on the WHAT IS A GOOD ALARM thread. Circuit City normally will pay for it. Something to note: The alarm had worked normally from January until now without any problems? Thats almost a year. Usually if the install was bad you would have had intermittant problems. Also, I don't remember ever seeing an alarm with burned wires. The only wire on the alarm that could cause it not to start would be the cut starter wire and unless it has a bad connection, it is usally wired in a normally closed configuration meaning that it will only open the connection when the alarm is going off. if there is a problem with the alarm the connection stays closed.
I would hate for you to have to pay for a starter relay wire to be loose, such an easy fix for the amount of money they will charge you.

Most Car Alarms have an inline fuse, so if the alarm shorts it blows the fuse before it can cause a short circuit. Very unlikely that the car alarm is the problem.