IMac G5 2.1 G Bottom Half of Display Doesn't Work

A friend of mine on 11/11/05 bought from an Apple Store an iMac G5 2.1 G. About five weeks ago the bottom half of the screen went out. The top half is fine, but the bottom half is shot. A week later he took it back to the Apple Store, and they determined that it would cost $1100 to fix, so he kept it and bought a new one for $1300.
He didn't have the three year warranty, but the person at the Genius Bar told him that he was twelve days late to get it fixed for free. I told him that he should go back to the store and pursue this, but he doesn't want to worry about it. Nonetheless, is he just the victim of bad luck, or does he have any recourse for a free repair?
Thanks - Somethingfromnothing

In other words, is there any way at all to somehow bypass the password and back it up to iTunes?

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