Select button stuck in

I as well as many other people have experienced problems with the center button or select button being permanantly depressed inside the clickwheel. For the most part the button still works but is rather annoying. Recently I have sent my iPod in for "repair" and was sent an email stating that it was not covered in the warranty and was asked if I wanted to spend $255 or have it sent back. I've heard of one person going to an apple store and receiving a new iPod because of the same situation but yet apple will not replace mine? Unfortunately I am not aware of any local apple stores near me. Anyways, I'd figure after spending $419 that I could have a decent product that would not malfunction after just a few months. Also when I sent the iPod in they gave me a nice new scratch on the bottom of my LCD screen.
If you have this issue don't even bother sending it in or calling. All you will do is waste your time. If anyone has any suggestions I would love to hear them.