Rant away my friend!
This is a terrible situation and is making me really wonder if I want the 09 I'm supposed to pick up Saturday... I like the bike, but I'm not sure I want to worry IF I should have a problem if Mamma Yamma is going to put me through hell (Or try to)
As for suing them, that's the nice part about small claims court, as long as the amount in question is less then a specified amount (here it is 5k) then it's not a major deal.
I believe what you do is document all your woes, and keep all the receipts for all the times you had to get the bike towed, lodging etc, (within reason) then file a complaint in small claims court to get reimbursed for all of that, also since they finally admitted it wasn't the farkles, bring the receipts for what you paid to have them installed and try to get reimbursed for that too.... You don't need lawyers for that and it's a pretty speedy process. and I think it costs like 30 bucks to file depending on your municipality...
Then you go before the judge, and explain your story, they explain theirs and the judge decides if they are just, and if they feel that they have put you through excessive ageda etc then the judge will rule that they have to reimburse you for expenses etc..
I would imagine that it would be cheaper for them to just settle with you since it would cost them dough to send someone to the court...etc...
..of course i"m not an attorney nor do I play one on TV.....so take my advice for what it is..
Ps, have you reported the dealers AND mamma Yamma to BBB for this?