Very strange set of circumstances Jim. Very glad they're offering the loaner bike to ride in the interim. You wrote, however, that it also is yet to be delivered to the dealer; is that right? If so how long before you actually have the loaner in hand?
Like you I'd have completely expected them to swap cases rather than complete engines. Though it's a policy rather than a cash thing for HDI. By the time they pay the dealership to do all the extra work plus supply the cases their outlay likely won't be all that much less than if they'd supplied a short engine.
They tell me the loaner will arrive with the dealer (who will deliver it to me) late next week, 2L. Apparently it has a "minor electrical fault" that the dealer will rectify. The fault will, I'll bet from the description, be the same one as my bike had - a dud connection in the Molex connector under the fairing that deals with the right hand control set, as, just as with mine, pressing the start button does nothing.
I'll take my camera next trip to the dealers and take a couple of pix of the "slice" of casting - it is the most bizarre artefact!
End deal is that they will do their best to ensure that my bike is fixed ASAP, I have the loaner for the period till it is, they'll up the warranty on my bike to 4 years, and if it develops a major fault after the rebuild, that can be attributed to the rebuild, they will supply an engine, no quibbling....
All of which seems fair to me, though I'd rather it hadn't happened at all.....
I may still attempt the temporary epoxy repair, so that I can at least be able to run the bike enough to get the TMax/AT, exhaust, and A/C installed, so that when they put it all back together, I don't have to take all that apart again immediately afterwards!
Jim