I am sorry to hear about your problem...
I had a GTX of the same vintage and had to replace the engine. The front cylinder was filling with oil due to seals that had failed (crankshaft, I think).
We had a shop in Salem, NH do the repair. I can get the contact information, if you like. The replacement engine was on the order of $700 and the total repair was approximately $2000.
I know that this has been an issue with this engine and that the same problem has occured in jetboats of the same vintage. I don't know of anyone who has received anything from the manufacturer and I don't think that the dealer has any responsibility for this type of issue. There is a good discussion board for Sea-Doo (
www.sea-doo.net) and you might find someone who has made out better. We paid the money and took the lumps.
Best of luck
Jetskier