Fahren, thanks for the input. This was the first time the wheels were off since purchase. I had the bike in 1 month before the warranty was up and I asked them to look it over completely to catch any warranty issues....which they did, but they weren't going to tear anything apart to find this.
AdventureUly - I currently have a check engine light after the warranty muffler replacement (on the drive home from the shop). I have not gotten the code out of it yet. I am also on my 3rd set of plugs at 6000 miles. I would push the dealer to replace your muffler under warranty....they know it's a problem with the coating that was used. I had to wait 4 months for them to get the part in because of the volume of warranty replacements. The bill would have been over $800 for the muffler, bearing, and axle if I didn't push for it to be warranty.
Don't get me wrong...I enjoy the bike. Sometimes though (just once in a while...like when these things happen) I wonder if I want to risk my life more due to my driving style or to the manufacturer.
Since Uly owners are so far and few between I think someone needs to make a true Uly owner's manual. Just cut the crap and say replace the wheel bearings with a specific type, check the steering head bearings like this and replace/adjust like this, work your dealer to replace the muffler under warranty, get your driving lights from this place, etc. I know the forums deal with some of this, but you have to be searching for it to find it....and that's tough when there are several forum sites to find things on.