My ipod touch 2g can't download most of the apps and its warranty has expired , is there any way to replace it ?

Ipod touch 2g - updated to 3g by itunes
My ipod touch has bad battery power, is there any way to replace the battery .
Also it cant install most of the apps , so I was wondering if apple will replace my ipod touch 2g for another ipod touch better gen .

Apple will only give you a 10% recycling discount if you turn in an old iPod when you purchase a new one.
Apple - Recycling Program for iPod and Mobile Phones
Apple will exchange your iPod for a refurbished one with a new battery for $79. May not be worth it for the old 2G. They do not fix yours.
Apple - iPod Repair price              
A third-party place like the following will replace the battery for less. Google for more.
iPhone Repair, Service & Parts: iPod Touch, iPad, MacBook Pro Screens
Replace the battery yourself if you are up to it. Yo can purchases a replacement battery for about $10
iPod Touch Repair – iFixit

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