same experience
last year my prs-500 was dead when it had only two weeks or so warranty left. (I suspect it died from dropping, but I am not sure)
Anyway I sent my reader back and fished out my credit card statement in my mailbox from a year ago, printed it out and enclosed it. (it's in Chinese, by the way, but it did have "Borders" and $324 something on it, so I guess the guys got the point XD) About two weeks later I got a new reader back (paid $29 too, and it's reburbished) but I was still happy. I've hacked it into displaying Chinese since and loved it even better