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I bought a 30G iPod photo a month ago and it hasn't worked properly from day 1. The unit won't recharge using a USB port and the screen has an intermittent colour problem (goes a crazy colour).
The retailer I bought it from has screwed me around by saying I could bring it back and they'd replace it and when I went to do that on the weekend they were out of stock. I've sent it back to Apple for repairs but I believe as the problems were with the unit from new they should replace it and not repair it. yes/no??
The warranty says "repair or replace" at their option. The good news is that they aren't terribly draconian, and if it craps out on you after a repair, they're likely to replace it.