I would like to clear up two falsehoods spouted by people who obviously have no idea what the truth is when it comes to this.
First of all, if your hardware fails outside of your one year warranty, and it is through no clear fault of your own, there is a FLAT RATE on repairs. The Powerbook flat rate is $380 plus tax. That includes a 49 dollar troubleshooting charge and 20 dollar shipping fee. So if your LCD just goes dead after your warranty is up, and it's not because of an accident, it will NOT cost you a grand. Same for logic board and other internal components. If someone paid a grand for their logic board to get replaced, they got jacked -- Apple doesn't even charge that much if it's from accidental damage. Accidental damage goes into tiered pricing, and it's often quite a bit more than the flat rate. But flat rate repairs are VERY reasonable. So let's not bend the truth, shall we?
As for the $49 fee that is charged when in-warranty, but out of phone support -- it is only actually billed IF it turns out to be a software or settings issue that is corrected over the phone. If it turns out to be a genuine hardware issue that is in-warranty, you will not be charged the $49 bucks.
The only thing to remember is that the casing of your machine is not covered under warranty OR Applecare, so don't dent it or anything.
In a word, Applecare IS worth it, 100%, ESPECIALLY on a laptop.