Do you think I got screwed, or is it just part of the hobby?

Ok guys, I need to vent and am pretty pissy right now, so I would like your level headed responses to help guide me. I want all kinds of feedback, from machinists to average enthusiasts. In order to protect other parties, I will not disclose the shop that did the work, or their location. Ok, here it goes....
2 years ago I had a 416 stroker built and machined by a local machine shop. They are known very well in this region for being a very good performance shop, building a lot of high dollar engines for circle track, drag, etc. Although they are mostly chevy and ford engines, I thought I would give them a try. So fast forward, they ordered all the parts with my consent, all forged bottom end, eddy heads, full roller valvetrain, etc. They did all machine work and blue printing. Also, they said they'd charge me 300 dollars to put together the shortblock, which I wasn't going to pay, except they said that they could guarantee it if they messed something up if they assembled it, so I thought it was good insurance for the machinework and blue printing.
Fast forward some more, I get the shortblock home, and assemble the rest of the engine, and have it dynoed and broken in at a dyno shop they recommended, who does all their dyno work. Everything went good, made great power and torque, the world is good. Now, after about 500-600 miles on the engine, it wouldn't quit using oil. It would use about a quart of oil every 200 miles or so, pretty ridiculous. So, I call them and tell them about the oil and he said to keep driving it and the rings should seal eventually. So I drove it all this spring and summer, and it never quit using oil. Now, in the meantime, oil pressure is great, car runs fantastic, no problems what so ever other than oil consumption. I did a compression test, 168-180 across all cylinders (I don't have access to a leakdown tester, but might buy one now). Now, since is still using oil I figured I'd give it to the end of the summer and all the rings should be sealed if they ever were going to. Now this is where it gets worse. The engine has 1500 miles on it, and now there is a bad rapping knock in the bottom end, started right after I started it up the other morning. I have pretty much isolated everything else and am almost positive that it is in the bottom end. However, oil pressure is still good, 50 psi at idle, and it idles fine, no misses or anything. So that is where I am at now. I called him to let him know I am not happy with this engine, especially the 300 dollars I paid to have them put the bottom end together for "insurance" and the fact that it used oil like crazy from the beginning, and now its knocking. I mean this thing has a rev limiter on it, always used and kept good oil in it (had to check it all the time cause of the useage), no way it should only last 1500 miles in my mind. I have yet to see where this goes, but I don't have a good feeling, as he told me to drain the oil and cut open the filter, which I am going to, but then told me I may have to pull it and figure out whats going on. In my opinion, this whole deal is on him and his shop. But like I said, I may not be thinking clearly. So guys, is this just life and should I suck it up and just fix it myself, or how would you feel? Because in my opinion, they definitely owe me something.

Thanks for listening to my rant. (P.S. if you can think of anything that would relate the oil usage engine damage I'm all ears)