Sorry I have been off the thread on my own post. I did not want to post any inaccuracies. I hope that what I am about to post will answer most of the questions, especially for FLY, LEO, RICH, ARCH, and even BAMA.
I am going to start from the very beginning so that all information that I have is out there regarding my experience.
I received my original SHO on June 2010. I took it to the lake and put the break in hrs on it per the owners manual. To my best estimate, I took my SHO to the dealership and had the recommended 20hr service performed. Now there was a question about the first service, on the original post. So let me answer it here. Break in on the SHO is 10hrs. It says nothing about changing the oil and filter at 10 hrs, only at 20hrs. So don't get break in and oil changes confused.
At the time of my first service on the FIRST power head, I had 21hrs. At approximately 26-30 hrs, I got Yamaha involved regarding the squeaking issue. Yamaha replaced the power head at which time I had 40hrs on the motor. Now, with the second power head, Yamaha rep and mechanic put the first 2 hrs of break in on the new power head. I picked the boat up and the motor ran smoothly. I took the SECOND power head in for it's 20hr service and at this time had the Yamaha synthetic 4-Stroke oil put in as recommended by Yamaha. At the time of this service, I had 66 hrs on the motor. At approximately 70 hrs, is when the second power head or the motor began squeaking again. Once again, Yamaha was contacted and this time they replaced not only the power head, but the mid-section as well.
As for what the exact cause of the noise and/or failure is, I DO NOT KNOW, nor does the YAMAHA REP. because neither the rep nor the mechanic were allowed to tear into the engine. I was told that both units (the first and second) were crated up and sent back to be disassembled by the engineers.
Now I would like to make note of some coincidences between the first and second power heads. Both power heads were early serial numbers and both seemed to begin squeaking after the 20 hr service. One thing I did notice is that after the 20 hr service and when the engine would start squeaking, the oil level would be up like it had made oil, about a 1/2 in above the upper mark and I would drop from 6000 rpm at WOT to about 5600 rpm at WOT. It was also noted that on the first power head, that there was a loss in oil pressure according to the ECU.
Lastly, I would like to say that YAMAHA has treated me great. Not once has Yamaha tried to place the blame of the break down on me. They have understood my frustration and corrected my issue promptly. I honestly believe that Yamaha has a great engine and is working hard to get what few issues there are worked out. I can not be more pleased with the service I have received from YAMAHA.
I wish I could tell you all exactly what was causing the squeaking noise, but I can't. Now that Yamaha has changed the power head and the mid section, if this unit does not squeak, then it would be well to assume that the squeaking was coming from the mid section. Only time will tell.