I think that if you can prove with receipts that you lived up you your end of the deal, you would have a strong case. The car was sold to you with an existing problem. You paid a lot of money to avoid exactly what is happening to you now. If you have the time and energy, go to court. I think you should call Toyota (no letters or e-mails) and insist to talk with somebody with authority that can overturn the previous decision or at least explain to you what caused this sludge in the first place. Be sure to get the names and times you talk to anybody and make a note of what they say. If they won�t talk to you its another good point to bring up in court. If they tell you it was a preexisting condition , another good point. I wish you all the luck in the world and will pass the word along as to what to expect from Toyota's service departments.
I wonder how the dealer would react if you put a copy of the rejection letter on the windshield of the cars on his lot some Sunday morning. I sure there�s a law agents it or is there. When you get your car back put a sign on it "I bought this lemon at xxxxxxx, ask me about it!" and make a few visits to the dealer for whatever reason you can think of. Be sure to pick a good parking spot.