Apple has announced an iPod recycling program at U.S. Apple retail stores, with a same-day discount if you purchase a new iPod at the same time.From the description on the Apple Retail Page:
Bring any used iPod, iPod mini or iPod photo to any of the more than 100 Apple Stores in the US for free environmentally friendly recycling and get a 10% discount on the purchase of a new iPod that same-day. See your store for details.
The program may help to blunt some complaints from environmentalists that discarded iPods were ending up in landfills where they might leak toxins.