Re: Is it safe to run after seizing?
So, since it appears you have had someone pull the heads off, how bad do the cylinders look, especially the one that seized?
Bottom line is they never found the reason the motor needed to be rebuilt anyways, they just rebuilt it and gave it back to you.
Regardless of who's to blame, it was a poor repair since they didn't locate the original root of the problem, then gave very poor advice to keep running it after it had seized. As iwombat said, the VRO can not pick on only 1 cylinder, if it goes out, all 4 would be toast, not just one. It does sound like they were trying to cover up their cheap rebuild job, and were possibly hoping you would throw a rod though the block so they could blame you and not have to foot the bill to fix it the right way.
I feel this would be a very hard case for you to win, since it's been 2 years since they did the job, and only 10 hours on the motor or so. Due to the amount of time it has been, they can blame you for the motor seizing and say you must have had bad gas in it. Your best bet would be to have that new shop's OMC tech give some sort of statement in writing as to the current condition of the engine, and why it seized up, and also what he found that was done incorrectly or not done at all (as the case of the deflector tubes).