Moisstink,
Jack from BikeBerry.com here. I'm very sorry to hear that you are having these kinds of issues with the engine kit that you purchased from us. I understand that having to troubleshoot the engine kit is a hassle and can be frustrating, especially when you just want the engine to start so you can have fun with it.
However, please do understand that the product that you purchase is a Do-It-Yourself engine kit and as such the inherent nature of the product is that you have to install the unit onto a bicycle properly before the engine works. Now with that being said,our years of experience in this industry has shown that in 99% of cases, when brand new engines do not run, it is usually due to some sort of installation error. That may mean a number of things, which includes the CDI and magneto wires being crossed, the kill switch being grounded and shorting the engine, carburetor not being adjusted properly, manifold having a leak in it, the magneto getting wet and shorting, the spark plug boot not being secured properly onto the engine, etc.
In any of these above mentioned examples, replacing the engine will not fix your problem. That is the reason why we go though a number of troubleshooting steps to determine what the problem is. To write off the entire engine as a "Lemon" and refusing to troubleshoot the issue with us, the inherent problem will not be solved even if the whole engine is replacement. The reason why we go through trouble shooting procedures is to save you time and money in sending the engine back only to find out that there is nothing wrong with the engine.
The fact of the matter is, it is very rare that the engine itself is defective. In most cases, it is either not connected properly, the carburetor is not adjusted properly or the magneto/CDI needs to be replaced. This can easily be determined by means of our comprehensive trouble shooting procedures, which we have used to quickly help solve the problems of hundreds of customers with the same issue. However, because we are working with you from California, you do have to work with us to help you. We really would love to get you back up and running.
If you are still having problem with the engine, please do feel free to contact me directly at 1800-317-0479 x101.
Also, we have not made any changes to our warranty policy like you suggest. Our industry leading 6-month warranty has been the same for a number of years.