Or if you are a student. It doesn't really matter. You can still save 100 more bucks off a BlackBook w/ a refurb over the student price.
But yes, by all means, buy Applecare within the first year, just in case.
I just had my cousin's 1st gen CoreDuo Macbook sent in for service 2 weeks ago. It had a bad hard drive and really bad discolored top case that was also chipping on the edges like many of them do. It was returned to me within 4 days.
When I got it back Apple had replaced the hard disk, replaced the top case, replaced the keyboard and trackpad, replaced the heatpipe and thermal paste, replaced the logic board and the fans.
I didn't ask them to do any of that except the hard drive and top case. I guess they felt it was necessary. She essentially has a fresh clean new laptop after 2 hard years of college use traveling with it every day...
Oh and they installed Leopard and iLife 08 for free when they reimaged the machine. They didn't even bother with Tiger and iLife06 that she had originally!
Pretty incredible service if you ask me.