Good point ezraglenn – Apple’s own AppleCare warranty is a good buy for their computers but not always for iPods due to a number of reasons. But the iPod warranty is annoyingly complicated due to hidden charges so I’ve outlined how it works under the extended and standard warranty.
Included standard warranty:
1–6 months: mail-in repairs for free
6–12 months: $29USD shipping for any repairs
Extended AppleCare warranty that’s $39/$59USD for nanos/classics (respectively):
1–12 months: Mail-in repairs for free or in-store new product replacement instantly
1–2 years: Mail-in repairs for free or in-store new product replacement instantly
If you want the warranty: buy it later within the 1st year of purchase, but before the 1st year is over (as you can’t get it after). That way if it’s stolen, lost, or given away you don’t waste that money.
If you’re on the standard warranty after 6 months and need service: just buy the AppleCare. You get instant exchange. The price difference between shipping and AppleCare is just $10–20USD and you get an extra year of warranty.
It’s just that easy. As in, not.
Reference: Apple’s iPod Service FAQ