Klgan,
Try to get it replaced under warranty.
When you get the new engine (providing it is the same engine, or another ABC/ABN type), break it in as described here:
http://www.rcuniverse.com/showthread...59&forumid=145
Disregard the bashing at the end of the thread.
If your replacement is a ringed engine, break it in very rich, four-cycling for the first 2-4 tanks.
DON'T BREAK AN ENGINE IN ON A PLANE. A FEW BENCH/TEST STAND RUNS HAVE CAUSED NO HARM TO ANYONE YET.
Sincerely,,