You might want to read through the doc linked below, especially the appeals process which you'll probably need to do, if you want to try pushing this up the line. Maybe leafing through a hard copy of this while you're at the stealership might convince them you'll be willing to go for the jugular. I don't see anything in there about titles, just a bunch of stuff about failure to maintain (which is what they'll probably fall back on to deny the warranty claim).
Good luck! (you'll need it)
http://epa.gov/obd/pubs/420f09048.pdf