My iPod glass is crack and the headset hole got very big and I cannot hear music from the headset but the headset work on other device

kaz-k, the warranty is irrelevant. A broken screen is not coverd by the warranty and void the warranty on the entire iPod.

Apple will exchange your iPod for a refurbished one for this price. They do not fix yours. I would say not worth it for a 2G iPod

Apple - iPod Repair price              

A third-party place like the following may repair it for less. Google for more.

iPhone Repair, Service & Parts: iPod Touch, iPad, MacBook Pro Screens

Fix it (replace headpohone jack and screen) yourself if you are up to it

iPod Touch Repair – iFixit

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