Dougslap: I have yet to get a straight answer from anyone on this question. Why is the whine on prevalent in the 2nd Gen? How come you dont hear of it in the preceding bike that share the same drive train parts? Can you put a 1st gen clutch basket in? I honestly think the only way to correct it completely would be to swap not only the clutch basket, but also the drive gear on the cluster set. I don't claim to be an engineer, but all that is being done it reducing the gap between the gears by replacing on of the out put gears and thus changing the face contact.
As far as the dealer goes. If they will guarantee whatever they are going to do gets rid of the whine, I'd say go for it. Other wise IMOP you could be throwing $$ at it until they get tired of taking it.