There was a long thread on here where O2 were shifting iPod Touches, 16 was £125 and 8 gig was about £100.
Just tried to get mine fixed at an Apple store and been told 'No way. This was sold in 2007 and is well out of guarantee'.
So I wiped out the till receipt and showed them that. And guess what? The serial number on the receipt (I didn't know it was there) isn't the same as the one on the iPod and the box!
Just called the store and the manager AND and assistant manager are both on day off today (how do these people run their stores?). The supervisor's 'looking into it, with the back office'.
The guy at Apple said he's come across stores who sell all their stock with the same serial number because it save having to scan every box ! Well great...
So if you got one last year, check that you're ipod, box and receipt match !