Have you pushed the button yet? (j/k)
I know how it stinks to have a lemon. But I would rather get a new engine and extended warranty (if it is transferable) on the condition that they fix all of the other little problems.
After they replace the engine and give you the transferable warranty, try trading it in a week later (make sure you make no mention of this plan beforehand). Express some discontent. I went with a buddy who was in the same predicament to the dealership and they were more than happy to trade him up, basically offering invoice on the new car, with rebates on top of that, and giving him the maximum they could for the new truck. They also had a "demo" vehicle they offered for under invoice (it had 5000 miles on it), but it wasn't what he wanted - ask about demo vehicles. If they are a good dealer, they should do this -- if not, go to another GM dealer.
Keep in mind, it's not the dealer's fault you have a lemon. You might not want to give them business, but again, if the car is a break-down prone piece of junk, you want to get rid of it --- if they won't buy it back, work it so they are sort of buying it back with a trade in. I dunno how it works but I assume GM would actually be buying it back, and to them you are just some faceless number of people who are trying to get into a fresh new vehicle, even though the dealer is offering to make what they consider sufficient repairs. The dealer doesn't want to buy it back, obviously, because they too got screwed in a way by the shoddy product.
My advice - don't get another Silverado. Truck awards notwithstanding, it is not a stellar scorer in the reliability arena according to magazines and reports I've read. The last thing you want is to buy another one and have some of the same things happen. You'll go nuts.
You'll probably say it is too small, but I would get a crew cab Colorado with the I-5. It's fresh, new, recently designed, and I seriously doubt you will have any engine troubles. Or a redesigned for 2003 Chevy Express - so it's not a pickup, but take the rear seats out and it might as well be. I dunno - the Silverado simply hasn't changed enough for me in the past few years. At least if they had done a serious redesign, and not just a grille change and tweaks, you could feel confident that thes same problems wouldn't crop up.
OK, I'll stop rambling now - good luck, whatever you choose.
:zippy: