iPod UK ipod nano faulty, replacement?

My 10 month old Black 8gig nano has developed a fault where if you brush against the headphone jack it crackles and goes only on one stereo channel. I presume the socket is a bit faulty.

I was going to take it to my local apple store to get it fixed, although I imagine they would just replace it as it would cost more to fix. Is this true first of all?

If they do replace it would they replace it with a similar one or one of the new stubby nano's, which I would obviously prefer? I can afford to wait a couple of months as I can live with the fault if it meant getting a new gen one. Thanks

That's what I thought, so maybe if I delay my return by a couple of months they will have run out of 2nd gen nanos. Looks like a moot point now as I have just tried it again and I can't get it to fail so maybe it's fixed itself.

I will probably buy a new ipod anyway in a couple of weeks as I am flying so the vat free prices at Dixons look good. Just got to decide whether nano or touch, if they are available by then.