What are my rights? iPod burned out - out of warrantee

Hi,
My iPod classic 120GB recently stopped working all of a sudden. The back went really hot when I was charging it. Then it went cold. I thought it might have been the battery. But now suspect it is the logic/motherboard.
I took it into Apple. Who then booked my in for a Genius bar appointment the following week.
As the iPod was two months out of warrantee, I was given three options:
1) Google UK ipod repairs - and get a third party ipod repair shop to fix it. But was warned I would get no warrantee and it might break again.
2) Get a genius bar replacement - costs £89 but only has a warrantee of 90 days
3) ipod recycle. I could give my ipod into them to be recycled, and get 10% off a new ipod (excludes ipod shuffle).
Ive just posted on another board on where would be the best place to get a new one (best deal) and had a few replies stating that as its only two months out of warrantee I could have a case for a replacement under the sales of goods act and my statutory rights.
What are my rights on getting a replacement for free? Another lady posted up that her daughters ipod was 6 months out of warrantee and they replaced it for free!
Do Apple base their customer service on how people look? Surely it should be consistent throughout the board?
Opinions?

Good luck to you in your endeavor, hope you get a good outcome. And no, I'm not familiar with all the consumer rights, but if the net effect is to extend the warranty period past the stated period, say by 6 month? A year? Two years? then Apple, and other companies in the UK will have to adjust the price points of their products in your country making them more expensive to purchase.
Did you ever take your iPod to an Apple Store, along with your MacBook Pro, and have them look at it? Send it in for service? The fact that your iPod failed after updating to iTunes 9 may be a pure coincidence, particularly since you have now restored it under iTunes 8 and it still does not work.
The link you keep providing is from 2006 and clearly explains the Apple representative was misquoted, so what is the purpose of it. Yes, they are designed to work "for" years. Will some of them fail in a shorter time period? Yes. Will some fail shortly after the warranty period? Yes. The statement you quote does not belie that.
I hope your endeavor results in some positive outcome, but a warranty period is just what it states and no "assumption" of a longer life entitles the purchaser to a replacement, free service, whatever. Other wise the warranty would state the warranty period is "for years". Kind of imprecise.
And your analogy to cars, houses, etc. doesn't really work. Cars are warranted for usually no less than 3 years/36,000 miles and some of them last decades. But if they break at 38 months you are going to have to cover the cost of a repair. Some houses have no warranty whatsoever.
I have had success in the past in dealing with Apple over products that were marginally (2 months in one case) past the warranty date with satisfaction. I note you have not yet responded how your direct dealings with Apple have gone.

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