Used Car Lemon Law Options

What is the name of your state? VA

On June 2, 2002 (9 months ago), I purchased a '95 Chevrolet Beretta Z26 with 49,168 miles for $4,988. The car came with a 50/50 warranty for 30 days or 1,000 miles.

I purchased the 'Ultimate' Extended Service Contract at the time of sale for 48 months/48,000 miles from American Auto Guardian, Inc. for $1795 with a $100 deductible.

The ABS light was on at delivery and the battery was replaced the next day. The automatic transmission was replaced within the 1st month for $2300 which Guardian paid for.

The car now has 59,200 miles on it and I've been told by the dealer it needs $3400 for the following repairs:
- EGR valve replacement $900
- Intake manifold gasket $900
- Front pads and rotors $600
- Replacement of front struts $800
- Directional signal handle $200
- ABS and Check Engine light problems unknown
Guardian says it will only cover $750 for the Intake manifold since the "EGR problem results from carbon buildup, a by-product of engine operation".

Questions:
1) Shouldn't the "125 point checklist" performed by the dealer prior to the sale have detected the EGR and Intake problems?
2) Shouldn't the ESP cover all major engine and suspension problems?
3) Does the total cost of repairs which now exceeds the purchase price of the car, qualify as a 'lemon'?
4) Do I have any legal recourse?