Here is an update:
I took my car (08 M35 with 26k on the odometer) in to Riverside Infiniti on April 2nd for feint knocking noise (this is the second time now....). Of course, being a great service department, they decided to change my short block again under powertrain warranty. At the same time, I decided to email Infiniti Consumer Affair and inform them of my concern. My concern was: How in the world does the short block go out again within 5k miles of replacement?! They responded within a 2 days and my rep has offered me extended power train warranty (8 years or 100k miles) since my case was highly unusual and after informing him that the dealership believes that the problem may be associated with transmission...
Fast forward to today: I received a call from Riverside Infiniti. They informed me that they put another new block on my car, but there was another problem. Now the noise is even louder! WTF. They now suspect there is a problem with the transmission! I informed that I brought the car in for the same problem and last replacement fixed the problem. I asked them how can this be.... Plus, my transmission has not caused any noticeable problems. Heck, my car drove normal other than the feint knocking noise which I was afraid that it would get worse over time. My service rep said they have to look at the car again and they will get back to me on Monday. Consumer Affairs also informed me that they will get in touch with me on Monday after further diagnosis.
Maybe my M35 is cursed... lol They are diligently working on my problem and I'm sure they will solve it eventually. However, I am starting to be concerned about the longevity of my M35. I only have 26k miles on it and there are some serious repeat offenders and a new offender.
I'll update the site as I get more info from the dealership and Consumer Affair. I'm quite satisfied with the actions taken by both Consumer Affairs and the dealership. Stay tuned!