Thanks for the replying again.
The new shop called me. Today they are going to do the leakdown test and wanted to take off the valve cover and also examine the rocker arms, etc. The price for that wasn't too steep so I decided to go with it.
He did a compression test and all the cylinders were fine except for cylinder 2 which was at 40 psi like Ford said.
He thinks it needs a valve job but wants to do more research before making a final decision. If it does, part of what he's charging today will go toward the repair and they can call the warranty company again with more information than worn out motor.
They couldn't tell me what my exact cost would be but I know it will be over a $1000 for that repair(for me out of pocket) if the warranty company won't cover it.
Like a dummy I honestly thought my transmission would go long before I ever needed engine repair.
So much for, if you care of them, they will last. Parts wear out regardless. I love Ford but will defiinitely consider other options when buying another car. I want something that make it to 200,000 before doing major engine work.
The shop is going to get back to me this afternoon with their findings.