Does Apple do anything now about the 5th Gen Audio problem?

My 30gig has worked wonderfully up until 2 weeks ago. Suddenly no sound output. If I squeeze the lower right side near the wheel I will get a short burst of the song. I am not a daily user of it as I'm always nervous about hurting it,so I've maybe used it as much in the last 4 years as some people do in 6 months. I've been using it on car trips so had my cable to hook it to the car radio.

I decided to start walking 2 weeks ago and couldn't find my headphones so I borrowed my 1o yr old daughters. No sound came out but I figured it was just because she had damaged her headphones. I finally went and bought myself a new set and headed out to walk last night,nothing.

I have read a few sites mentioning this problem back to 2007 and many people were able to get a free,out of warranty replacement. But I'm not seeing anyone have luck with it in the last 6 months.

To be 100% honest I had never wanted an Apple product but my husband,parents and brother went together to get this for me. I had fallen in love with it and had started putting money away to get my girls Touches for christmas but have changed my mind on that. If mine breaks sitting on my dresser than what will happen to theirs?!