Faulty RAM and dispute with supplier - Advice needed

Hi,
A 2gb chip of RAM has developed a fault in my Mac Pro taking it from a full 16gb RAM to 12gb (that's a 4gb loss because the chips work in pairs so the paired chip is rendered useless without the faulty chip). I am currently in a bit of dispute with the company that I bought the Mac from about replacing the RAM. The Mac Pro was purchased in 2009 with the 16gb RAM pre-installed.
The RAM is Kingston RAM and comes with a "lifetime warranty". However that warranty is pretty useless since Kingston have stopped manufacturing the chip I need!! The computer supplier have offered to refund me for the 4gb of RAM that would leave me with an underpowered machine and a little extra cash that I can't even use to buy more RAM since it has to be Kingston to work with the other 12gb. Not a situation that I find in any way satisfactory for obvious reasons.
Alternatively, they have offered to pay for half the cost of replacing the entire 16gb set with new Crucial RAM (who are still making compatible RAM) with me making up the other half of the cost - this would cost me approx £200.
However, I feel that since I have been sold a piece of faulty kit that was supposedly guaranteed for a "lifetime" that it isn't right that I should now have to pay £200 to restore my Mac to it's initial RAM capacity. I have already paid for the RAM. I shouldn't have to pay twice, given it's "lifetime warranty". I feel that it was their error to use a supplier of RAM who stops production so soon of chips that are only a few years old and that therefore they should replace the entire 16gb set with Crucial RAM, free of charge.
I'm still in discussions with the company but would appreciate people's thoughts on this issue. Am I being unreasonable? How would you tackle it? What kind of service should I expect in this situation?
Thanks.

As I said above... they are smoking trash.
They don't know Jack to me, not about Mac Pro FBDIMM or yours.
If this was 2009 and 4GB DIMMs (DDR3 ECC) had just come out, then there were issues, but you don't and this isn't that. Or using DDR3 8GB or 16GB. Not that either.
https://developer.apple.com/library/mac/#technotes/tn2006/tn2156.html
http://www.xbitlabs.com/news/memory/display/20060510074751.html
http://en.wikipedia.org/wiki/Fully_Buffered_DIMM
http://www.memorysuppliers.com/pc80dd240pin4.html
http://www.jedec.org/standards-documents/results/taxonomy%3A2499?order=field_doc _full_number_value&sort=asc
FBDIMM STANDARD: DDR2 SDRAM FULLY BUFFERED DIMM (FBDIMM) DESIGN STANDARD
JESD205
Mar 2007
This standard defines the electrical and mechanical requirements for 240-pin, PC2-4200/PC2-5300/PC2-6400, 72 bit-wide, Fully Buffered Double Data Rate Synchronous DRAM Dual In-Line Memory Modules (DDR2 SDRAM FB-DIMMs).These SDRAM FB-DIMMs are intended for use as main memory when installed in systems such as servers and workstations. PC2-4200/PC2-5300/PC2-6400 refers to the DIMM naming convention in which PC2-4200/PC2-5300/PC2-6400 indicates a 240-pin DDR2 DIMM running at 266/333/400 MHz DRAM clock speed and offering 4266/5333/6400 MB/s bandwidth.
Patent(s): There are known patent issues that are common to all FBDIMM related specifications. See document for link to FBDIMM Patents.

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