Koodauw said:
If you read the warranty though, they are not obligated to do that. Sometimes it is less of a hassle for them to just do an exchange, and thus they do that. I'm glad you got a new iPod, but please realize that this same experience is not necessarily duplicated in every store.
I work at Customer Service at Best Buy and deal with this multiple times every time I work. So here is the lowdown:
Best Buy offers both a replacement plan and a service plan on iPods.
Under a replacement plan they ARE obligated to do this. iPods that best buy offers a replacement plan on (currently only the nano, previously they have been offered on early 4th gen and prior) are products which are designated in such a way they can be sent back to the manufacturer and Best Buy will receive a credit. (Many many products, mostly smaller ones, have this designation.) For this reason it is cheaper for them to just exchange if for you in the store.
Under a service plan Best Buy will send your iPod out for service. Best Buy offeres the service plan on curent video iPods and late 4th gen iPods. Repairs will be made unless the cost of the repairs exceeds the cost of a replacement, in which case you will be notified and you will be given a new, off the shelf, iPod. As of me typing this Best Buy ONLY services the 60gb video ipods, but not the 30gb videos. The service center has not yet converted for those. Most likely it will be sent out for service, but will be 'junked out' at the service center and you given a replacement.
Best Buy will also honor the manufacturers warranty, but this is more iffy and will probably vary store to store. They are SUPPOSED to either exchange the unit or send it to service for you and have Apple pick up the tab.
I definitely recommend the best buy plans over the Apple ones, espeically on the nano since it is cheaper and you receive a replacement in store. For other iPods you essentially get the same deal no matter where you buy it, but best buys price may be cheaper.
WARNING: Best Buy will not cover cracked screens! If your iPod has dents it may be deemed user inflicted damage.
Edit: BEST BUY'S REPLACEMENT PLANS AS OF AUGUST 2004 NO LONGER COVER BATTERIES, but the service plans DO cover batteries. There is major company wide confusion on this (understandibly so), so you would probably be able to get away with using it as a reason if you have a replacement plan, but don't bank on it. Also, many employees will tell you otherwise, for some reason the company can't get this issue straight.