I'd like to know more about this bikes failure.
I've owned several Yamahas, Hondas and Kaws, and while they may have had little issues when new, I've never heard of a Japanese bike suffering catastrophic failure without reason. The worst story I ever actually saw as a Yamaha 4 cylinder that was assembled without RINGS on one piston! It ran crappy until the dealer finally tore the head off at 8K miles and found the cause. But it was still running.
Not sure in your case, but following the break-in procedure in the manual and having the first service performed is a must. After that the bike's a gem for life.
Running for more than a minute with the choke all out will always overheat the engine/clutch (they share the same oil) and discolor the pipes.
Also an out of whack air/fuel mixture at the carburetor can cause the same thing. The air/fuel mixture could either have been fixed, or it could have been broken at the first service.
There are cams available for the V-Star 1100s that will boost top-end and partially eliminate the higher rpm vibration. There are 2 into 1 exhaust systems that will yield about 2 or 3 horses, as well. I've been a proponent of 2 into 1 exhausts for V-Twin engines since the early 1970s. They work.
I own a 2005 V-Star 1100. It now has 21000 miles on it and I have had 0 problems with it. My aftermarket pipes blued a little, but I do have a throttle problem that tends to run it a little hot (I run with the throttle wide open too much). Sorry you had trouble with yours, but mine is great.
Have an 07 VStar Custom and love it. I put an oil filter reloc kit and tons on chrome. It does need a 6th gear on the interstate, but overall it's a SWEET ride.
I am very surprised to hear of the problems at 1300 miles. I have had absolutely no problems in over 22000 miles on my 2005 Classic. The only problem I ever have is not enough time to ride. I wish I could work part time and still keep the bills paid. I had it serviced on schedule until the 7000 or so mile mark. Since then it's been oil changes only, after reading this I guess I will get the full service next March.
I'm surprised to hear of the problems with this bike...
I've got an '02 XVS-1100, which has done 107,000km (67,000 miles) all over Australia & is still running like new.
Just normal, regular servicing etc & she still purrs like a kitten :-)