RE: I would rather spend $500
Don't get me wrong here shadow, I understand what you are talking about. They would rather work on equipment purchased in there shop...and that is understandable. But they could have told him no and sent him packing. But instead, they charged him around 40 bucks an hour for crappy work....that is what is not right about the whole deal.
No different than a plumber charging you to fix pipes and not fixing them completly and wanting paid for it. I bet nobody would be happy about that.