Ouch, those are some hefty checkride fees. Say what you will about the FSDO, but the FAA guys don't charge a thing.

Just to echo what others have said here, if there's a ride to bust, it's the CFI-Initial. Pass rates are rough and it can be tough to prepare to a knowledge standard of "everything."

I agree with you that the CFI oral should be "open-book," so long as you immediately know where to look and aren't simply searching in desperation--you'll be spending a fair amount of time looking things up with students in the coming year--but each FAA guy or DPE is different and sets the standards as they see appropriate. On the bright side, you now know what your examiner expects and can better prepare yourself for him.

Keep your chin up, study up, and you'll be fine. I'm sure students will be trying to kill you on a daily basis in no time