The warranty is screwed the device is busted whats-more I'll donate my left teste if they agree to repair it for free.
You're sure it's Ipod and not Iphone?
If it's for Ipod or Iphone it's very easily done with a bit of care, good eyesight and steady hands. Here's 1 guide there are more, watch a few different ones a few times to really get your head around the job/process. Also a good LED headtorch is handy.
Buy a screen of ebay. From someone in Oz or if unavailable then HK with good rep.
http://www.ebay.com.au/sch/i.html?_odkw=ipod+5+screen&_osacat=0&_from=R40&_trksid=p2045573.m570.l1311.R6.TR12.TRC2&_nkw=ipod+screen+replacement+kit&_sacat=0 If however it's more likely Iphone5.
www.ebay.com.au/sch/i.html?_sacat=0&_from=R40&_nkw=iphone+5+screen+replacement+kit&_nkwusc=ipone+5+screen+replacement+kit&_rdc=1 Whichever device it is make sure you get the toolkit included as there are propriety pentalobe screw's that you won't have the driver for and the phillip's heads are tiny, smaller than most peoples general jeweler's toolkit.
I've repaired lappy's, phones, mp3's and I'm no brain surgeon, give it a go you'll both learn something. The best fix I did was my wife's Iphone speakers for $10 delivered, they quoted $70. Another satisfying job was fixing my laptop in warranty after the "OEM technician" left a plug half undone.