A: Yes. Apple has an official battery replacement program for $59 in the United States (see also: Europe and Canada pricing). The program requires that you send in your iPod (any model), and Apple will replace the battery and return it to you for $59 plus shipping and handling (technically, Apple actually replaces your whole iPod with an equivalent new model or factory-refurbished model in a new enclosure, with its own service warranty; if the iPod was previously engraved by Apple, it will be engraved again). AppleCare programs for iPod are also available in some markets outside the US, and are expected soon in other markets.
The replacement program is now also available via Apple Retail locations.
WTF? Have any of you Pod People had to deal with this?