RE: Desert Aircraft - Super!!
That's great to hear. I just had a similiar experience. I had the twisted wire loom I placed over the spark plug cable get cut by the cowl on my Cap which in turn cut the braiding on the cable to the point the ignition failed. I bought a new one and sent the old one in for repair which ended up costing me shipping only.
Sounds like you had an older engine that may have required the last round of updates. I had this with a used one I bought. The owner told me the engine was due for updates so I sent it off to them, got it back and all for no charge and was told that even a second hand engine still falls under the warranty, very cool stuff.
My only wish is that they would make a 75cc-80cc engine for the new line of 80cc planes coming out.