I know this isn't ipod related but I gotta share...
Apple has a flat rate repair for products that fall outside of warranty. The macbook pro is $350. Not bad if you need a LCD or logic board replaced with the peace of mind that guarantees the work for 90 days.
This is why I don't purchase apple care anymore. Its basically the same price and I may not need it after all.
If this is true (it would be great), this will only work for Apple itself. It wouldn't work with authorized resellers/repairers outside the US (I speak out of experience).