Benzwood, the dealer should have confirmed the head was perfectly flat before reinstalling it. As you mentioned, the dealer should have proposed installing new valve guides and/or seals. If it were me I'd have the cooling system flushed/cleaned to remove any remnants of oil which could affect the cooling system efficiency. From your description it appears the Service Department at the first dealer was marginally competent, at best.
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Fred Hoelzle
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