Still testing it, but have had it fully submerged in water for 6 (edit: over 14) hours now with it playing music. Every so often, I pulled it out of the water to skip songs and press/move buttons and switches. All I did was use a syringe to inject dielectric silicon grease into the shuffle through its headphone jack. Being sure to really pack it in to fill all the void. That was it. Real easy and seems to be working. Do not use anything that hardens....like epoxies. This would probably ruin the controls as once it hardens, you pretty much locked the controls. If this is mostly all the companies do that sell these ipods, well...its like robbery. The skill to do, time spent and material cost is no where near the justifacation for the charge, other than wanting to make 500% profit (just guessing). If they dont open up the casing, there is not much more they can do than what i am discribing here. As far as warranty to replace if it breaks, well at the prices they charge, you can buy three iPod shuffles or...