Just went to the Apple store...

My girlfriend and myself popped into the Apple store to repair her iPod Touch screen today. We made an appointment for the Genius bar, left and ate and came back, and waited on our service. A nice guy came over and examined the iPod and said that they would have to replace then entire iPod. No big deal, cost more than I'd've liked but ok. He went and got the new one and we taled and waited calmly. He brought us it, we signed, and left. The Kicker: we came in with a damaged 8gb iPod Touch and left with a new 32gb iPod touch.

tl;dr: Apple "Genius" gives us 4 times the power for a damaged iPod. Everything goes better than expected.