
Apple has announced an iPod recycling program at U.S. Apple retail stores, with a same-day discount if you purchase a new iPod at the same time.
From the description on the Apple Retail Page:
The program may help to blunt some complaints from environmentalists that discarded iPods were ending up in landfills where they might leak toxins.Bring any used iPod, iPod mini or iPod photo to any of the more than 100 Apple Stores in the US for free environmentally friendly recycling and get a 10% discount on the purchase of a new iPod that same-day. See your store for details.