Mother of broken, no shattered screen.

Well I guess there is more than just my daughter in the world that has one of these ipod's with shattered screen and still using it. Apple will not cover accident's (which when it comes to these ipods you are bound to crack, chip, shatter, etc..) cause they would probably go out of business. The fact that I bought extended warranty at store I got ipod from just for "accidents" and they tell me that warranty doesn't cover it, I would have to call apple. Who in return informed me that thier one year warranty doesn't cover damage to the screen either.... I will not buy another one, cause after everything is said and done, it's going to be a $500 ipod that originally was $200 and something!!!!!

Just for future reference, most warranties, even most extended warranties, do NOT cover accidental damage.  They cover manufacuters defects and faulty material only.
What you wanted was a protection plan or product insurance program - completely different thing from a warranty.
It can get confusing, because some places do "bundle" a protection plan into their extended warranty, but you want to see, in writing, that the plan does specifically include accidental damage coverage.  If it does not explicitly say so, it will not coverage such damage.
Apple's extended warrantly plan, AppleCare, is simply an extension of your basic warranty and is not a protection plan.  Neither the Apple warranty, nor AppleCare covers damage caused by accident, abuse, mis-use and so on.

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