Was told originally they would send me a new unit and I sent my old one back so it was arranged.
Then Apple called me back later that day, saying there was an issue and I got told wrong information. Since I didnt have Apple Care or something, it was going to cost me $50 to do express replacement. But since I was told wrong information, they waved that fee and said they need to put a hold of $900 or something on my credit card.
2 days later, new phone arrived (refurbished / new, not sure) and it worked perfect. Restored my old phone, put it in the included box and courier bag, and sent it off (free shipping included too). Couldn't have been easier.
Then they received my old phone, looked it over and released the hold a few days later.
The hold was the only annoying thing because it meant I couldnt use the card if I had to for whatever reason, but still, I'd rather be without that card for a few days if it meant I didnt have to be without an iphone for 2 weeks.
The other option I think they have is where you send your iPhone in, (after they send you packaging etc) and they replace it and send it back. You still have to pay a fee but no hold goes on your card since they'll have your phone.
I really like apples support, just deal directly with them and avoid all the mucking around with Telecom and their repairer.