According to sources, Apple is planning on announcing the availability of the AppleCare Protection Plan for their iPod product line as early as Monday. AppleCare is presently only offered for Apple's desktop, laptops and server computers.
AppleCare is Apple's extended repair coverage and extends both their Telephone Support (90 days) and Repairs (1 year) to a three year period from time of purchase.
As with many warranties, accident/abuse and normal wear and tear are not covered under the plan. Full details of Apple's present AppleCare plan are available in this Terms and Conditions PDF.