I've written up the whole story and it's a couple of pages - unfortunately is all german, so prolly won't get you far if I post it
I'll try a quick summery:
I've bought one of these 06er S-Works frames with 07er AFR rear shock from an eBay seller named o_cyclism_o (just as jhair and apparently a few others around here did).
Shortly after building the bike the brain stopped working correctly (the dial on the brain has no effect anymore, it now acts as if always open). I went to a local store to see what a payed repair would cost - as I had already assumed that there will be no warranty service.
The guys at the store contacted Specialized and (to my surprise) they promissed me a warranty repair under the condition that I send in the complete bike.
Although I had my doubts I finally agreed and had the bike sent in. 3 weeks went by until they sent it back, telling me that frame and shock don't fit and due to the missing serial number on the frame there won't be any warranty.
Note that the setup (06 frame / 07 shock), missing frame serial, no invoice (from an authorized specialized dealer) was known by Specialized BEFORE the bike was sent in, I spoke with them myself, asked if the missing serial would be a problem etc....they sweet-talked to me until I was convinced to send in the bike.
After getting back the bike I asked again about a payed repair and was (officially) denied as well.
In the last phone call I had with the service guy he hinted me that I should try and go to a different Specialized dealer and just hand him the shock for a regular factory service. I was a bit surprised and asked if that would make sense as the serial number on the shock would be known by them now. He promised me that they didn't note down the serial.
So thats what I did - sent the shock to a different dealer to have him send it in for service. And guess what?
After weeks of waiting I get the reply that Specialized has detected the shock to be imported irregularly. And again no repairs.
So like I said - they lied and cheated and my shock is still defective.