Arg i had an extended warranty on my iPod mini. When I sent it away for repair it got lost in the post. It took me 6 weeks to get the matter resovled, and i was given a refurb 20 gig 4th gen iPod as it's replacement, which lived for aabout 15 months before the hard drive failed.
I went out and bought an 80 gig Classic last month, didn't bother extending the warranty this time as I think at £160 a pop something better will be out (and cheaper) by the time I replace it.