Apple was quite brief about the replacement, so to speak, as it was not entirely clear whether it would be done by sending a new 1st generation iPod or one of the newer ones. According to comments in MacRumors today, some people are already receiving the shipping mail from Apple indicating that they will soon receive their iPod nano. The email contains the serial number of the iPod, and it appears that the number is one of the latest generation .
I have not yet received such an email, let alone the iPod nano, but due to the high demand in the replacement program it was almost expected that Apple would send new iPods once the first generation iPod stocks were finished. It also didn’t seem logical that Apple would order new batteries, since it would involve repairing hundreds of thousands of iPods worldwide, checking them, and then packaging and shipping them. This would involve costs that would likely exceed the cost of shipping a new, next-generation iPod nano directly from the factory.