Costco: where Apple's discontinued iPods go

TUAW also reports they have pretty good warranty service:

5 reasons to love Costco during the gift-giving season - The Unofficial Apple Weblog (TUAW):

...Their slightly out-of-date iPods. Costco provides a reliable resource for anyone looking to buy older-generation iPods. They clearance them out with excellent prices and good availability. Costco currently carries iPod Nanos and Videos (which still work with free video out!), as well as the newer Classics, and Touches...