Well, just wanted to let y'all know how this all ended up....

After 2 weeks my friend's shock came back from Fox, and the LBS where he dropped it off said it was only $80. The shop guy seemed very surprised-- he told us how Fox's service is usually super-crappy, and usually this same process costs at least $160. Woo Hoo!

So, I told my friend I felt like I should pitch in for the cost, but he said no, don't worry about it, let's just go ride. After the ride I paid for the pitcher at the pub, and all was good.

Thanks, everyone, for the advice on this one.