a TBE alone, by all rights, should not blow the engine. there is a good chance your turbo is going to start smoking and burning up a little oil, a search of the forums will net you that information in spades.
that said, a dealer local to me warrantied a customer's turbo despite having a full TBE, a cobb stage 2 reflash, an intake, blow off valve and engine mount. it really depends on the dealership, how you treat them, etc.
hey Ken can you tell me which dealer this was?