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I'm an AppleCare advocate myself, esp. for the portables. I'm not "gentle" with our laptops, so I've always purchased AppleCare for our Powerbooks and iBooks.
MousePod, a friend of mine had the IDENTICAL problem to yours on his iBook G3. I think it happened within the first few months, and after that incident, he went ahead and purchased the AppleCare extension.
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