alright, i'm worried now.
There is a stock 02 Protege5 that overheated and fried the piston rings (Was bone stock) and he had a warranty, they denied his claim, saying "He should have shut the car off when the temp light came on"
The mechanic is worried as well, cause he knows ii need amotor
you don't need to be worried, IIRC you have had the car in several times for engine problems, and the warranty paid, so you have documentation showing you tried to have the problem resolved. If they give you a hard time say see you in court. (1) fighting a court case is more expensive than fixing the engine (2) Judge's don't like big companies trying to screw the little guy.
Oh and get yourself a new mechanic, one who will work with you and not the warranty company. The last time he had the car in for an engine noise he should have rebuilt it then when the company agreed to pay. Instead he just did a band aid repair.
Pat.