Best Buy Warranty Issue: iPod Mini

So I bought an iPod mini from Best Buy and paid extra for the extended Best Buy warranty plan about 8 months ago. It is still covered for at least another year. I get headphone problems every now and then where one of them cuts out and I have to tilt the male end into the female port to get it to connect through both ear speaker lines. If I brought this into for warranty what the heck happens? They took the mini off the shelf. Would they have to ship on in for me or could I use credit for the same purchase price towards a different item, like I dunno, one of those video player things?

Anyone have a clue. Help would be greatly appreciated!