Wow - that sucks dude. You have the original factory skids? I'd say remove the lift & skids and go to another dealer.

It's a fucking 'Off Road' truck for christ sake, what do they think you are gonna do with it? It's supposed to be built for off roading and they penalize people for doing just that. Isn't there some kind of law where they have to prove that the mods are what caused the part to fail? Don't give up dude.

It's a shame, but I won't be wheeling my Xterra other than for camping excursions along forrest roads, after the problems I've heard people having I just don't want the hassle of blowing a front diff on my daily driver. So I put $750 into an 87 4Runner from a girl at work which will be my trail rig once I've put a few $$$ into some mods.