IPOD Hot to touch, no battery, no connection, any insight?

Hello
I got a new IPod 5th Gen 30 GB Black for Christmas, shortly thereafter(within a week) I used it until the battery went dead, i tried charging it by plugging it in to my USB port i left it there for the reccomended half hour and then some with no luck, no lights, no bells, no whistles nothing... but it did get warm.
So i figured hey, I'm using a labtop, maybe its not working right, so I went out and bought a brand new AC adaptor not only that but I got a new USB connector too just in case I messed up the wire, plugged it in and for a few seconds got charging screen, I left it plugged in for awhile but the screen again went dead and the Ipod became HOT to the touch, hot to the point in which one should not touch it.
Now I called into Apple and they are sending me a repair box...
Did anyone have this problem, and am I going to get charged, if so I don't know what I'm going to do, it would really be terrible customer service if they somehow blame it on me, I mean there are a few scratches on the outer case because of the shiny material but nothing that could internally damage the Ipod...
Can anyone help?

Sounds like you received an iPod with a defective battery or something else is defective but Apple will make that determination with tests they perform.
If the tests confirm there is a manufacturing defect, the iPod will be repaired or you will be sent a replacement under warranty.
If the tests conclude the damage was caused by something else that is not covered under warranty, you shouldn't be charged anything and the iPod will be returned to you as it was received.

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