Bought an All in One printer/copier/scanner from PC World in October 2007 with a 3 year instant replacement agreement. In January the small hinged plastic pull out tray which supported the printed paper broke. I emailed PC World and they advised me to take the printer to my local store. After two phone calls, the manager finaly agreed that I could have a free replacement even though it was not strictly covered under the agreement. So I have now got a better All in One printer/copier/scanner and it has fax as well. I quietly and diplomatically said I did not like to have to continually pick up the printed sheets off the floor!!
"3 year instant replacement", but like the man said, it possibly didn't cover cosmetics like broken plastic. Best to check the small print perhaps, and see if PCW were being generous or initially a little awkward!.
Personally I have a number of All-in-Ones (HP-Brother-Canon) all costing less than £40.00, so I wouldn't even consider an extended warranty.
That does seem like quite a good result to me. As 'spuds' said it's surprising they didn't pass it off as cosmetic- although if the paper isn't being collected after printing and instead shooting out onto the floor I suppose they would have to do something!
It makes me glad to here a good comment about PcWorld. It sometimes seems to get quite bad press, I've never had a bad experience with them (bar once).