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I'm not a big fan of extended warranties and I run the Internet division of a company that sell them for cars.

That being said, I will get AppleCare for my new 20" iMac G5. At $169 (probably can find it a bit cheaper; I just did, $140 at Small Dog) for 2 years of coverage, it's a bargain. At Apple's list price, that's 7 bucks a month. Imagine what a repair to the LCD would cost?
 
Be firm

My advice to the original post is to remain firm and document every conversation you have with AppleCare. Also, do not try to manufacture portions of the convo with appleCare as they keep a log of every call you make.

I had a situation some months back where I felt Apple was responsible for a problem and I strongly demanded they fix it (bought a Rev 2 12" and discovered it had been built with a Rev 1 CPU).

Their first reaction was denial because this sort of thing "just didn't heppen." But I was calmly persistent and they finally had to admit they'd made a mistake.

The offered solution involved me sending my PB to Texas for repairs which were supposed to take no more than 7 days. I explained that I could not be without my computer for that long and - once again after firm pressure - they agreed to ship a new CPU/Logic board to my local Apple Reseller for replacement and repair.

I was disappointed in their initial response but am pleased the resolution ended in my favor.

So - be firm, take notes and let them know exactly what you want. I think it also helps to not become unreasonably demanding. There were people who suggested I should get a free iPod (or something similar) for the trouble I went through. I admit, that would have been nice - but I just wanted my machine fixed in as short a period of time as possible.
 
Yeah, I usually find that if you could have fixed the machine yourself, the support would suck. I have sent my PB in twice and both times I have gotten it back with cosmetic damage. I don't really care with that sort of thing so I don't mind, especially since I need my computer more than I care about its cosmetic state. Anyhoo, the first time was for an LCD replacement and they sorta messed up both hinges. like on my left one there is a gap between the LCD and hinge and on the right one there was a huge chip in it. So sending it in the second time for a busted fan I mentioned the right hinge. Well, they did replace it - but with another chipped hinge. I thought that was a tad funny myself. Anyhoo - after the 2nd trip to AC it has also received "stress marks" on the white LCD bottom hinge part + another chip n the plastic. Also there was a heap of problems I had with the shipment of the PB to get to me, but I won't go into that.
 
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