SO sorry everyone for the delay!
After the shop having my Liberty for 3 days (and each day saying they would have it ready for me that night) it's fixed!!
Like I mentioned in my last post, they first replaced a vent motor or something, and that didn't do the trick.
Then the switch panel and that didn't work either...
They FINALLY dove in for the full HVAC BOX replacement. The service manager handling it was GREAT and was totally on my side and stuck with me through this whole thing.
Apparently the 1st repair of the vent motor was never supposed to happen - he wanted the HVAC BOX done RIGHT AWAY, but there was a miscommunication and they wrote up the order for just the small repair.
Anyways, they pulled the dash and then noticed that the NEW HVAC BOX was defective - had a seam that wasn't sealed and would end up leaking air)
He said he would never install something like that cuz it could end up causing me issues later, so they ordered ANOTHER box...end DAY 1.
Now the 2nd day they went to install the SECOND HVAC BOX and noticed that there was a foam gasket of some sort that didn't come with it, so they had to order THAT. They got it the same day, and after installing everything they somehow broke the video feed to my front license plate cam. I was peaved, especially when they said they had snipped off the broken video plug at the LockPick end and put a new connector on and it still didn't work. They claimed to have tried reversing the +/- on the plug like I asked, but it still didn't work.
They wanted to replace the whole cable run to the front. I told then it had taken me 2 hours to get it just the way I wanted it, and he assured me that they had done Lockpicks and cams before (strange that a Jeep dealer would install something that overrides some features of the MyGig, but cool I guess)
So, DAY 3 was spent getting the cam working and detailing my Jeep inside and out (it's like new again! er, well at least on the inside - the outside only lasted 1 Minnesota slush-filled drive)
SO, to sum it up, when he pulled the ORIGINAL HVAC BOX out, he noticed that there was like a 1/4" play in the blend door that fed the defrost. He told me to tell you all that when your dealer checks the blend door function via the computer interface (wow! My iPhone OBD-II app can't do that - had no idea something as simple as that could be "read" through the OBD) they will APPEAR to be functioning 100%, but it doesn't read any play in the doors.
He said the force of the air would push the loose door out of the way and the air would leak out the defrost.
SO - it works WAY better now! There is a small amount of air coming out the defrost when set to 12:00, but there is now a DEFINATE difference between 12:00 and 1:00. The "paper test" doesn't lift the paper now more than 1/2" where before it went right to the windshield.
Don't give up! I personally think the Jeep HVAC boxes have an inherent problem with blend door play, so who knows if there will be a recall someday.