Coolant Leaking problems of the 2000 Volkswagen Passat

I am the original owner of a 2000 vw Passat, 4 cyl. On 3/24/06, the defrost no longer worked properly in the vehicle. Pinkish-orange coolant started spraying out on my feet while driving, white smoke came spilling out of the vents & the coolant spread itself thick on the interior of the windshield & windows. This left it cloudy & I had to pull the vehicle over and wipe the windows with cleaner and paper towels. With it becoming immediately cloudy, I lost visibility of the cars in front of me. Coolant also leaked onto the passenger floor board/mat. I immediately looked online for feedback and found it could possibly be a cracked heater core (which is not covered under my extended warranty). I took it by a vw dealer for a drive by diagnosis, it was confirmed it was the heater core. I contacted vw of America immediately to notify them of this problem and asked if they could assist with 50%-100% of the repairs because it was a reported problem everywhere. Vw customer care said I needed to set up a diagnosis appt with the vw dealer, which was on 4/24/06. 10 minutes after I dropped my car off, my service consultant russell dilley w/miramar vw in san diego, CA called my cell phone and said "yes it is the heater core". Prior to leaving my car with him, he believed it to be a cracked heater core, just with my few symptoms explained and he said he has seen this problem many times before and he confirmed vw of America had covered the cost of the repairs. I notified vw of America customer care that the diagnosis was performed and ready. I had to pay $99. 00 for the so called one hour diagnosis appt, even though it was confirmed in 10 minutes. Customer care said they would contact me within 48 hours to let me know their decision w/the assistance of the repair. I received a call yesterday 5/1/06 from marlina, she said vw of America will not be able to assist with the repair of the cracked heater core because of the age of the vehicle & the mileage. Year 2000, mileage 89k.