Yes, they actually ended up replacing the entire engine.
Ah gotcha, thanks, sorry I missed it up there, re-read that they were going to swap in that lower mileage motor.
Just an update, after more digging around the entire engine was replaced. Thank God I had that extended warranty as the job would have cost around ~$8000. I was hoping to get a brand new engine, but unfortunately the third party warranty company didn't want to pay for a new one. However the engine they found only had 29,000 miles on it, compared to my 80,000 miles. Also they looked over the engine, replaced all the gaskets and moved my new spark plugs from the old engine to the new one. Not too shabby.
Hope that motor lasts you a good long trouble free time.