I had mine done under warranty. It was indeed a hideous noise! Shame you cant get yours sorted mate, but if it was done under warranty.....what's making the noise now then?
I can only assume that the dealer is being truthful about mine being done previous. I feel that it is pointless persuing it as the bike is well out of warranty now. I have no idea why it is playing up again. It could just a piece of shite design.
Check this out with another dealer (like Wodonga KTM or Boltons) Jazza - My dealer told me it was a recall that was generally done during a service during the warranty period. Another dealer can see on a KTM site if its ben done.