All is well. After my research I talked to the Service Manager the same day I first posted this message, and said that "Half" would not be enough. Then he let me speak with his manager (probably regional manager), and said that Half is not good enough. He said that, "This is what they are doing in this situation." And I said back to him, well obviously this isn't the first time it has happened, since this is what they do in this "situation", and that 50/50 is not good enough since it is a reoccuring issue, and that there is a "flaw" in the cylinders dating back to '91. I said that will all the info I found out, that I will speak to whom ever I have to, to get this resolved. He said that he would again talk to the "Saturn people", but it was unlikely that it would be free. I said "We'll see, and again I'll go above your head, and whomever else I have to directly." He said he will be in touch.
He calls me back the next morning, and said they will cover everything except for a "deductible" of $250. Whatever they want to call the $250 payment, I don't care, b/c it is a lot better than 50/50, and certainly better than the full cost ($2952). So, it pays to do your research, to stand your ground, and speak up. If I hadn't said anything, they would've taken my $2952 without blinking. The car will done this Monday, or Tuesday at the latest.
Thanks to all that replied to my post.
Ian