My Apple Care plan expired less than a week ago, and my phone has died. Will Apple have any mercy on me?

I am beyond livid that my two-year apple care plan is now expired on my iPhone 3G and my phone has completely gone kaput. I attempted to go to AT&T yesterday and just get the iPhone 4, but with the iPhone 5 lurking just around the corner, I would have to pay full value when it comes out in a few weeks/months.
My brother gave me his old iPhone; will I be able to activate it with no problem? I read an article somewhere that I'd have to sign a new two-year agreement with AT&T to activate the old phone, again defeating the purpose of using an interim phone before the 5 comes out.
Someone help!!

Actually MArc, it is you who needs to get the story straight.
Apple Care on an iPhone only extends the warranty one year past the original first year, giving you 2 years in total.
Details here:
http://store.apple.com/us/product/MC253LL/B?mco=MTY3ODQ5OTY
Apple Care on Computers (not iPhones), extends the warranty two years after the original first year, giving you 3 years in total.
Details here:
http://store.apple.com/us/product/MD006LL/A?mco=MTY3ODQ5OTY

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