I have had good luck with Apple Care
Hey everyone! Great website, just discovered it today. Anyway, I bought a 40 gb 4th gen Ipod last July (2004). I own a lot of home electronics and typically don't ever buy extended warranties, probably because I have been quite lucky with most of the items I have purchased. I did buy the Apple Care, however, because I felt it was worth the money considering the fact the iPod is at a much greater risk of getting broken since I always carry it around with me and sometimes use it while excercising.
In March 2005 the click wheel stopped working, and I went back to the store with my Apple Care extended warranty and they gave me a brand new one on the spot. No questions asked. I certainly can't complain about that. The way I see it is the iPod and the warranty cost me almost 500$, but at least I know that the thing will work for at least 2 years. With the amount of time I use the thing, 500$ is not bad for at least 2 years of service.
If I didn't have Apple Care, I would have been in big trouble thats for sure. This is one case where I am glad I payed the extra!
Kevin