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There must have been literally no way they could claim it wasn't them.
IMO, if you accept the wheels back in that condition, and hand over any money, you've got no leg to stand on..
Re: 1st & 2scd knocking
If you want the timing proper checked, give JMS an email.
Best way to test it, is get someone who knows the cars to come out for a quick drive. If the timing's out, they'll probably notice.
Re: 1st & 2scd knocking
Where are you based?
If it's knocking at high revs, 90% it'll be the engine mounts..
Put your hands on the throttle body, and on the inlet, and rock the engine. If it moves about too much, they're goosed.
Bearing kits shouldn't be that much..
http://www.eurocarparts.com/ecp/c/Renault_Clio_2.0_2000/p/Car-Parts/Transmission/Transmission-Parts/Wheel-Bearings-and-Hubs/?628745210&1&317bd69cce5015c24112e451b6a8cfed9c61d2bd&WBRK
And that's including VAT!
ABS ring is part of the driveshaft.