How Do you Deal With Warranty Work On Your Home?

I purchased a home from a developer, DR Horton, on the Big Island. I had heard prior to purchasing to be very careful about making sure everything was correct before purchasing because their warranty department was really bad.

Anyway, everything was pretty good at the house so we closed on it. The only problem we have had is that the fireplace does not work. It has been this way for a year and a half now and I have contacted them about resolving it just about every month. At first they kept on extending the flue and then after they maxed out the height they just say they are trying to figure something out, but never do anything. I gave them a month in February to either fix it or convert it to gas. They tell me once to twice a week they are working on it, but of course no one is out here "working on it".

I would just like to be done with these guys. How do you resolve this? Do I try to take them to small claims court to get something to cover my cost to fix it? Do I hire an attorney to contact them (I really don't want to go this route)? Any input would be greatly appreciated as this is my first new home so I am not sure how to handle it.