Here is my solution to extended warranties.
You have one years warranty supplied with your PC, so if anything goes wrong during that time, you're covered. From day one put aside £5.00 per week. At the end of the year you will have £260.00 put aside. If anything goes wrong during the second year your £260.00 should cover it. Continue putting away the £5.00 per week throughout the second year. At the end of two years you will have accrued £520.00. If nothing has gone wrong (and why should it on a new PC?), go out and have a spend up with your own money. In effect you are insuring yourself, with a gaurantee of all your money back if nothing goes wrong, but with a pool of money to cover the outlay if it does.