Can you slide both bearings into place on the spindle without them being in the hub? This would tell you if the inside surface of the bearing is catching on the spindle. If it's not that it almost has to be that one of races is not seated properly or you have a defective/wrong race/bearing/seal.
I don't think birfs had anything to do with your failure. I bet it was just wheel bearing failure...but I'm surprised you didn't notice anything funny before it happened. Glad you ok.
What kind of warranty does the dealer have on their service? A long time ago I had a front wheel bearing fail soon after having a dealer repack them. They ended up picking up the tab on new bearings, a new spindle, and a new hub.
Also, what are they going to charge $2000 for? I think you...
I think it would be easier to undo the line with the pump still bolted in. Mine was really tight and I don't know how I would hold the pump steady if it wasn't bolted in place.
Mine came out pretty easy, but I did have to lower the crossmember a little to access some of the bolts.
Getting it back in was a serious hassle. But I was doing it by myself with a floor jack. The problem is that it's a weird shape (and heavy). I ended up making a cradle for it out of some...
To answer some of your questions:
Loose wheel bearings shouldn't accelerate wear of the birf.
If you are going to tear into one side I would do the other at the same time. Unless the other birf has already been replaced it is probably nearly as worn as the clicking one.
How bad is the...
You mean you have taken the lug nuts off and the wheel won't come off? I usually find something heavy to knock it loose with, or you might be able to get a pry bar in there somewhere.