Frank, et al...

I've had considerable luck dealing with big companies (though never 
VWofA) by using the word "contract." Even though it's a verbal statement, 
I always take the position that a representative of a company telling me 
something is so is in essense, entering into a contract on behalf of the 
company. I know some written warranties say this is not so...and I'm no 
lawyer...but if I feel I've been done wrong, I'm always polite, I always 
try to climb the ladder as quickly as possible, and I say things like: 
"as far as I'm concerned, your representative's statement that xxx would 
be covered constitutes a contract, the terms of which you have failed to 
satisfy..."

Just my 2 cents. Glad you were persistent! Joe