IMHO the site seems to miss the mark a bit. The flash animated iPod seems more "kid" than it does "teen / young adult". It doesn't seem "cool" enough for the teen market. It's borderline lame.
On the good side, the "coupons" are a good idea, but it seems overly complicated (download, find the PDF - pray they have acrobat -, print) I see no reason that it shouldn't just be printable from the page you're on or open in a new window. Plus, the iCards are good with decent copy.
On the downside, visually, it's not very Apple. I'd be ok with that if it were MORE of a departure in order to target the youth, but this looks like a good fan site instead of Apple quality.
I'd like to see more depth in the "how it works" section. It truly is cool how easy and well it can work, and they seem to glaze over that. No need to be super technical about it, but c'mon it doesn't answer the question "how does it work?"
Finally, the "What is an iPod" area is quite weak. Granted, folks who visit probably already have some idea what it is, but it's possible that many have just seen the ads or heard of an iPod. This section means nothing to anyone who truly doesn't know what it is or what it does.
Overall, I give it a C or C+ as it has it's good points and bad. I'm sure they'll see a fair ROI from this as it cannot have taken much time to develop.