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So, how many people have been benefited by the extended warranty due to a bad capacitor after a year? Dell customers excluded. :)

I have with mac mini's on two occasions. actually both times at the 30 month point of apple care. I not only got back working computers. I got a newer upgraded one for one of the repairs due to a lack of repair parts. Ie logic board for a 1.66 ghz mini they gave me a 1.83ghz mini instead. I do agree with you that in general electronic warranty extensions are a waste of money. For apple computers it simply is not true. I just sell the mac on ebay at the 28 to 30 month point of applecare on ebay. Due to the applecare it sells better and macs hold value well. With both factors it is kind of a no brainer.
 
As it stands, providing there is nothing wrong with the machine, I am going to keep it until it dies. If cost of repair is not advantageous, I'll buy something else. I doubt I'll buy another MP due to their cost approach being outside justifiable for me. If I get back into more of my creative work then we'll see. For now, all I know is I'll likely keep this machine until it dies, warranty or not.

My warranty was extended until February 2012 because they replaced the machine in February 2009, giving me basically one extra year ... in some weird theory I created in my scattered mind.
 
I'm rocking two Mac Pro's (Early 2008) until they die on me or they get dreadfully slow for my type of work.

If the machine works perfectly why bother upgrading?

If it is suddenly too slow for your line of work, sure, upgrade.
 
I'm also keep my 08 mac pro, last year my 8800GT is gone and GTX285 is come, today I just upgrade 3 SSD raid 0 for OSX, 3 640GB raid 0 for data.
 
Mine will exit warranty coverage in March. So far, the system has shown no sign of problems, and it is still meeting my performance needs. I also have a Mini and an Air around, so if the Pro did tank, I'd still have other systems to work off of for a bit.

For now my plan is to just keep using the system, and if something major fails, I'll consider buying a 2011 Mac Pro (whenever they come out). Without a failure, I think this system will last me well into 2012, probably even 2013, with maybe one more video card upgrade.
 
So I think I am going to keep the 08 for now.

I am definitely going to toss in a couple SSDs, probably 240s.

What would be the best overall card to replace my 8800GT? GTX 285, 5770, 5870?
 
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So I think I am going to keep the 08 for now.

I am definitely going to toss in a couple SSDs, probably 240s.

What would be the best overall card to replace my 8800GT? GTX 285, 5770, 5870?

Should be 5870, if I'm not own the GTX285, I will use 5870 too
 
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