Hi guys, I didn't even know there was an on line community for mz3 owners!

Wish I was here under different circumstances

I desperately NEED help. Bought a used 05 hatch for my wife. She wanted a Civic, but I convinced her to get a Mazda (she fell in love when she drove it - needless to say, NOT your average stereotypical lady driver ).
This was in late August '09. The car had 101K on it.
Its barely March of 2010, 126K and my engine is DEAD. It has not been opened up, but I suspected and a couple mechanics confirmed, that at least one con rod bearing is spun (I've heard this sound, never on a car this new, this gently driven...).
The dealer gave a 2yr or 24K power train warranty. As you can see the math says I should just bend over and take it like a big boy....
I called Japan Auto Parts - dealt with them before with OK results. Was told that they will NOT sell me a USED 2.3L because of a known oil starvation issue on the #3 cylinder - they only sell REBUILT ones that have had the oil gal. bored out on that cylinder to prevent what he called a "not if but when" oil starvation leading to failure...
I have never heard of this before, and yes, I did do some research and most people RAVE about the Mz3 in just about every way.
The sticker shock was unpleasant too - they quoted me $2750 for the engine... Cheapest I could find is $2300 from a scrap yard with 113K - thanks, I'll take the $400 for the J.A.P unit... IF I HAVE TO.

Question is, a) IS this a known issue? and b) am I absolutely sentenced to basically shelling out $4000 to get this done (engine plus work)?

I can't do a swap by myself due to living and work arrangements... And we're piss ass broke because the wife is in school (expensive...), I am on disability (60% of usual income) and we spent more than we planned on a NICE, RELIABLE CAR for her

Pleas help - I really appreciate it, and thank you in advance,

Peter.