There are actually two different kinds of service plans available at Best Buy. There's the PRP (Product Replacement Plan) for smaller ticket items, and there's the PSP (Performance Service Plan) for larger ticket items.
The PRP is sold on any video game consoles, DVD players, stuff like that. With the PRP, once you get an item replaced once, that's it.
The PSP is sold on TV's, PC's, appliances, stereos, stuff like that. Most PSP's last 3 years, although some last 4. With the PSP, if you have to get an item replaced, you are able to continue having the benefits of what you originally bought, including any repairs or replacements, through out the life of the original plan.
So...if I buy a PC today, along with a PSP, and in a year and a half, lightning fries it and I need to replace it, they replace it. If 6 months later, it gets hit by lightning again, they replace it again.
But with the PRP, if my XBox breaks and I go in and get it replaced, that's it. I can buy a NEW PRP with the XBox, but he original one gets "used up" by the one replacement.
BTW - I worked at Best Buy for a couple of years while I was in college.

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