First welcome to the forum. I would be happy if they can do this work for that price, but plan on the bill being double that just to make sure. Normally this isn't a cheap fix.
Sounds like battery may be dead. On the 96 it also had the spider alarm system if I recall correctly, which suck. Make sure you use the remote to unlock the door if possible otherwise lock and unlock the door with the key at least 3 times slowly to ensure the alarm is not set.
Do you hear the...
Welcome to the forum. Upgrades are up to you at the end of the day, but for the cost of Johnson Rods, I sell just as good a product at way less of a price. Most of these questions are better asked in the LR4 section.
I know from previous experience Warranty companies will only cover items that are actually bad. So unless the timing chain is bad and making noise I doubt they will cover this work.
Welcome to the forum. Wish you the best on this, did you LR dealer tell you it would be covered under warranty? I can only see it covered if it was causing issues.
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