My ipod doesn't work and my warranty doesn't want to cover it !!!!!!!

I have the new 30g video ipod, I just recently bought it in Feb,2006. Lately my ipod hasn't been showing up on my pc or itunes, so I did the 5R's like they tell you to do and nothing. So I finally had to get it serviced and I sent it to them and now after 3 weeks that they had it over there , they're telling me its not covered, that there was some type of accidental damage and that if I want to get it fixed I would have to pay $255 !!!! I said "whoa, are you kidding me?" There was no accidental damage on my ipod just 1 little lousy dent on the back that I had on it because it fell 1 time and they told me that's the reason why its not covered, because of the dent it has. I told them that the problem is with the opening of the usb port and that the dent has nothing to do with it because it was working just fine after it fell and I had the problem with the usb opening from before it fell, any suggestions on what I can do , because $255 is a lot of money, I can buy myself a new one for that much !!!
30G video ipod   Windows XP  

NO THEY HAVEN'T CHARGED ME FOR IT , I STILL HAVEN'T EVEN RECEIVED MY IPOD YET AND ITS BEEN ALMOST A MONTH SINCE I LAST SENT IT IN , BUT THEY DON'T CHARGE YOU IF THEY ARE NOT GOING TO FIX IT . BUT ITS CRAZY HOW MUCH THEY CHARGE FOR THESE IPODS, THEY NEED TO COME UP WITH A BETTER INSURANCE THAN THE ONE THEY HAVE NOW , LIKE THE ONES THEY HAVE FOR CELLPHONES . THESE THINGS ARE SO FRAGILE THEY CAN BREAK FOR ANYTHING,ANYTHING CAN MESS UP ON IT. IF I WOULD'VE KNOWN THIS BEFORE CONSIDERING EVEN BUYING A IPOD I WOULD'VE NEVER BOUGHT IT. THEY'RE NICE AND EVERYTHING BUT THEY COME OUT REAL EXPENSIVE .

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