[Stap Boy]

Ford of Canada WILL, in most instances, back the Dealer. Why?
Mainly... Dealer will spin everything it sends to FoMoCaCa in their favour. It becomes your word against Theirs and unless you can prove to FoMoCoCa that it was the Dealers fault (something near impossible to do, especially when you consider how much warranty abuse is out there).

Ford wants to know who the Crooked Dealers are, but, they can't simply take the word of people who are dis-satisfied with their service. (You guys are most likley the rarity in that you have been been denied warranty for BS reasons)

The dealership's history with Ford also plays a large part in this. do some research into the past practices of this dealership. I bet you'll find they've been running some pretty bad warranty claims through Ford in the past and Mr.Willy Ford Jr. has put his foot down to these folks and said "One more Bunk warranty claim and yer Cut off" so... Dealership is just covering their ass

Depending on how this escalates, shoot me a PM. Its a long-shot but there's a site on the Ford Intra-Net where, Ford employee's who have friends with Ford issues can submit some things to higher-ups that would maybe not always get there through regular channels. With my being a Ford employee... its possible I could help y'all out of your predicament!