The Limited Warranty Statement that came with my computer listed the following website for warranty details:
http://www.joysystems.com/RMA
The quick answer is yes, shipping cost are covered and the warranty covers replacement of defective hardware, costs and labor for 12 months.
This is my second computer, the first had a non-functioning cooling fan. I returned the first computer to my local Best Buy store under their 15 day return guarantee and they ordered the replacement computer for me all at no cost.