GPU Problem?

My 8800GTX failed and was sent back to ASUS to get rebuilt or replaced under warranty.

They say that the GPU is toast and that they do not have an 8800GTX to have a like for like replacement. They are offering a 260GTX. It is obviously an improvement from what I have now after just a little tiny bit of research, but the cost differential is killing me. When I bought the 8800GTX is was near the top of the line and the 260GTX seems like a bit of a bargin deal for ASUS to pawn off on me.

Am I getting ripped or should I try and work my way into a better replacement part that is closer to what I paid for the card?

My system specs are:
ASUS M2N32-SLI Deluxe wireless addition motherboard
AMD 64X2 dual core processor
PC Power and Cool Silencer 750 Quad

Interested in your thoughts.