Question Concerning "Terms and Conditions"

Lately I have been pondering about whether I should put iPodLinux on my 3rd Generation iPod so that I can play videos on it and more that Apple doesn't allow you to do. I would normally do this in a heartbeat, only my Apple Care extended warranty doesn't expire for 5 more months. So, I looked at the "Terms and Conditions" for my warranty and found an interesting bit....
The plan does not cover:
"Damage to the Covered Equipment caused by accident, abuse, neglect, misuse (including faulty installation, repair, or maintenance by anyone other than Apple or an Apple authorized Service Provider), unauthorized modification"
That does on, but you can see the point I'm making just from that. According to the section I just read, it is not violating your warranty to install other software on your iPod, but Apple won't cover it if your iPod is damaged because of the software. So, say I installed iPodLinux on my iPod, and it was working fine, but one day my scroll wheel just stopped working... I could get my iPod repaired because it is still covered under the warranty, correct?
Please let me know if I am interpretting this incorrectly.
-Timo

^Thats what I suspected, only I couldn't find anything about just installing it and voiding your warranty, only that AppleCare doesn't cover damage resulting from manipulation of your iPod.
Of course, I wasn't reading the original iPod warranty...
-Timo

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