Insanity.<p>Proper response: Refund their money <i>and</i> send them <i>several</i> of the best and newest iPods on the market as a replacement. Also, send them a sincere apology, hand-written (in pen ink on paper, not printed) by someone at Apple in the top 1% of all employees, including an offer to pay for any damages caused by the exploding device. Then, work as hard as possible coming up with the reason why it happened, and as soon as you know, issue a public statement detailing which iPods are at risk (if the incident wasn't a fluke) and how customers can send them in for replacements. Finally, make sure the problem never, ever happens again in any product your company makes. Write a unit test, as it were, for the cause of the explosion and test all future devices for the same problem.<p>Yes, I know I'm living in a dream world, but it's nice here.