I'm sorry, I hadn't been on all day. Stanger, I understand how you can interpret their policy differently, but I've never ever heard of a company who offers a warranty charge you to send it back to you. I'm telling you, I just sent a broken ratchet main gear to Cornwell, and they sent me a rebuild kit on their dime. It only cost me like $1.50 or so to send it (less than the cost of the gas it would have taken to track down a dealer, even if there was one in my area). Yes, you could try and call your dealer, but I agree with you 100%, I wouldn't feel comfortable walking in there for the first time for a warranty replacement.
Just mail it to them with a homemade packing slip telling them the part number and what is wrong with it.