Advanced Transmission Double charged me and received State assistance WHY?? Hazel Park, Michigan

On November 21, 2011 I called Advanced Transmission, INC. 348 E. Nine Mile Road Hazel Park, MI 48030 (248) 541-2048 and explained my problem which was when I driving in first gear my transmission dragged and then jumped into gear at 10 rpm. 

The mechanic told me there was a $50 - $70 fee to examine my truck. I drove my truck to their shop with an inspection in mind just a little hesitation in transmission OK!!

So while I was in school the mechanic called me back and said something about looking further and to drop the transmission to look further?? Too get more money and so on that's why I don't understand what was the second examination for if they should've found a problem from the first examination??  They told me with a written estimate that it would be around $700.00 he also included to bring in $400.00 cash as a down payment and I could finance the rest immediately. So I'm thinking why
would I finance $300.00 from a $400.00 down payment. So I searched for assistance and the state DHS helped me with meeting all their guidelines and so with another estimate and the price went from $700.00 to around $1100.00 on the state DHS estimate. With the state approving $900.00 and they have had my truck since November 22, 2011. On Monday January 2, 2012 after receiving the approval letter I called and returned to show Advanced Transmission, INC. the copy of the approval letter and they copied the letter. On January 4, 2012 two days later I called them and Advanced Transmission, INC. informs me that myvehicle now cost $1600.00 and $640.00 was for the transmission inspection what??.  But the mechanic keeps telling me if I get all of the cash now he would give me the cash back when the check comes in?.   If I had the money why would they think I would ask for assistance??  But they still want money out of me that I don't have.

Is there anyone that canhelp with advice?? I work and start school full-time Monday, 1/9/12 and I don't have no transportation again from when I just purchased the truck in September and really haven’t enjoyed driving it due to problems and issues from non-accredited businesses not with the BBB.
  
Now I ask you “How does this sounds”??