Toyota Repair: engine failure, engine alignment, oil light

Question
In july 2003, I had the engine in my 1992 camry le overhauled, the car had 160,000 miles on it, the work cost $4000.00. Ever since the overhaul I have had trouble with my oil light flickering when the car idles after running a while. For three years I have been going back to the dealer for this problem. The mechanic would do something the oil light would stop for a while then it would start again. The mechanic at the dealer could not figure out why the oil light was flickering.I dropped the car of two weeks ago for the same problem. Now they tell me that the bearings around a balancing shaft at the bottom of the engine have worn out, and that the shaft which is supposed to have something to do with engine alignment is riding inside the housing spreading metal through out the engine.The service department said that my engine is ruined and that they would replace with a used one for 1150.00 and will not charge for labor. I have only put 30,000 miles on the car since the overhaul. Should those bearing have replaced during the overhaul? Should I be looking for an attorney?

Answer
Sounds like it plain wore out.
They never should have rebuilt it at 160K miles without telling you what may occur down the road.
find out where they got the motor and see if you can find out what they paid for it.
1150 seems like theres some labor hidden in there.

Mike