5th Generation Nano Battery Replacement

I bought my wife a RED ipod Nano (along with engraving) as a gift a while back and now it won't hold a charge longer than 40 minutes of play time and then it dies and needs to be re-charged.

We took it in today to an authorized apple dealer today and they said this is the one model they CANNOT replace the batteries on and that all we have to do is go to the Apple.com site, and fill out a form to have ours boxed up and shipped back and a new one sent out. They mentioned there would be a fee for this, but it wouldn't be anything like a new Nano.

Problem is - I can't find anything on the support pages about this.

Does anyone know anything about this?