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Hi Susan,
I just got a call from Lenny of Auto Sport Engineering (a Stow, MA-based performance shop and dealer). According to him the issue is a slipped sleeve in the engine block, which causes a destructive interference with the piston ring and, in turn, the piston itself.
Because of a prevalent manufacturing issue with these '99's, you should be 100% covered by Porsche despite being about a year out of warranty. You need to fight for this to make sure it happens, you should not be working toward a compromise dollar figure.
I hope this helps. I apologize for my initial post, I misread your question and took it to meaning that your car had already been agreed to being fixed at no cost to you.
Regards,
Charlie
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