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Seems that Omega has changed their policy on this, because I beleive that they have serviced grey market watches in the past. Of course they will not honor the warranty without an international warranty card.
But to outright refuse to service it seems to be a new direction. And to offer to re-authenticate it does seem like a money making scam for them, however at $1000 they are not likely to have many takers when the watch probably cost less than that in the first place. This does make sense, however as they are getting more aggressive on their move back upscale and this is a good way to squeeze out grey market purchases.
At any rate, check around at some local AD's. One of them probably offers in house watch repair. They should be able to service the watch for you for a nominal fee. It won't be the "works" that Omega service will get you, but they should be able to get it working fine again.
Best of luck,