He's just trying to cover his ass so that way they have a way out if warrentee doesn't cover it or if the dealship doesn't want to take it on.. Yes you are right, he doesn't know what he's talking about. Remember it's a manufacturing defect, you did nothing wrong. Tell them that if they give you any greef. Don't be affraid to tell them your upset about the situation. No bike should leak oil at those locations if the gasket is good and there put together right. So yes, Yamaha should cover that no questions asked. If they tell you any different take it to some one that will cover it. Also they should have record of you with your tune up service, that goes along way with Yamaha, showing that you are trying to take care of your bike. Don't let them **** you around.