Agreed with that^
This shop has clearly demonstrated that they are incompetent and irresponsible.
Since you've asked: Yes, whatever warranty they may offer would certainly be backed(ha!) by them. Do you really want to go back there? Ever?
If they sourced a decent used engine and haven't screwed it up on the installation then chances are you will be good to go. Find a new mechanic.
Don't know what if any oil leaks you may have had previously but a second hand engine is always a crap shoot. Given previous performance I doubt they bothered to re-gasket or even check.
If in your shoes I'd find a competent servicer familiar with your model(check w local BMW club) and have them go over it for you. If any fault is found better to address it now.
Its guys like you've been dealing with that give the trade a black eye. Its also guys like YOU that enable them to persist. You've been way to patient, sir.
Good luck, I hope your nightmare is finally over.
If you can leave two black stripes from the exit of one corner to the braking zone of the next, you have enough horsepower. - Mark Donohue
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