Run, don't walk to another dealer
Congratulations on going for the "beast" of the cruisers. As mentioned the shift from nuetral to first should smooth out, my Kawasaki Vulcan 1500, sometimes did the same thing.
About this dealer, it sounds like you may have gotten a great deal, possibly, on the price and the salesman is trying to make up for it on warranties. The prices quoted you are pure out and out, unadulterated BS, pardon my french. As mentioned the warranties that are available (and there are not many) do not cost that much, a lot, but not that much.
The comment about the oil change is really strange. Is this a brand new 2007, or a, could it be, a previously owned Rocket? If it is new, you need to do the 500 or so miles on it and get the first service which includes the oil change (which is a synthetic oil, I am thinking that the original oil in it is not???). After that the next service is at 10,000 miles which includes the next oil change (remember we are talking synthetic oil here it can go longer than "normal" dino oil).
In case the salesman didn't tell you the Rocket comes with a 2 year, unlimited mileage warranty. Because of his "pushing" these extended plans on you and his questionable comment "maybe it needs an oil change (if it is, in fact, new), I wouldn't feel comfortable doing business at this dealer.
As also been previously mentioned, go thru the different topics on this forum, there is a lot of info here that may save you a lot of pain and grief.
Good luck and enjoy the Rocket from whatever dealer you ultimately buy it from.
Dennis
1 dtg!