I don't think they do. Not even the stores will really do them unless you find the right store manager to work with. Nearest store for me is also pretty far away, 3+ hours. I wish they partnered up with Best Buy to do more in store. They put their logos up and everything and have all this Microsoft cool stuff, but they really don't offer anything more. It's just unfortunately branding and competing with Apple since they were the first ones to do it.
I had used the online service for my first repair and was returned a used one. In Connecticut here we have a full sized store in Danbury which is over 50 miles from me. The next best thing was a small kiosk a couple of miles from me. I decided to try it out. Walked to the kiosk, the staff greeted me and I explained the situation. They asked if I had the protection plan and for my receipt. I gave them the original email that was sent to me and they were able to look online for the warranty. I explained to them that I was tired of getting refurbs since I keep my stuff clean. They said no problem to the exchange and in the end I got a new one. So the short answer is yes, they should be able to fulfill your request to have it replaced. P.S. I had just spent over $40 for screen and back protection on my device and they flat out refused to give me any break or credit on the loss of my purchases. Hope this helps?
I know this is late but I bought my sp2 256 at a kiosk and had to exchange it twice because the first 2 had warped kickstands. They handled it. If you bought your device from a different retailer not sure what they will do. When I bought my sp2 they said they could handle any issue there, all warranty issues, if I didn't want to mess around on the phone.