If you have Apple Care, you should be covered. Otherwise I think you'll have to take advantage of the iPod recycling program, which is basically just 10% of the original fee. You can decide for yourself is your iPod is worth 25 bucks or not. :-\
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Ok, so i purchaced a ipod video 3 months ago. Unfortunatly, it has already broke ( it tryed apple support and everything.) Am i allowed to trade in my old ipod and try to get the itouch?