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In my experience they will not cover lcd screen damage if it caused by neglect/misuse. I believe that Compaq's policy for out of warranty service is $275 and for that they will replace 3 defective parts (motherboard, hard drive, etc.) - unless no-fault warranty coverage then they will cover the lcd screen. May want to check online for computer parts - used computer parts places, or Craigslist or Ebay for one that has a good screen and junk hard drive, motherboard, etc. If you can put back together a ABU conventional reel - you can replace a screen on a laptop.
You can buy a USB2.0 external hardrive shell for 2.5" drives from NewEgg.com ($10 - $15) or other online or brick and mortar computer electronics store and if careful you should be able to remove the hard drive on the unit and put it in the enclosure and connect it to a working machine to access the data - remove the data for backup. No real need to have someone charge you extra $$ to do that service. If the laptop is under warranty - give it a shot, but don't hold your breath. Sometimes it is best to be less than forthcoming about what caused the issue - sad but true. Plausible deniability is not just for politicians.
If the machine is out of warranty and 3 years old or so, think about getting a new one for her. The cost to repair probably is not worth it. TigerDirect, Buy.com, eCost.com, NewEgg.com all sell fairly cheap reconditioned or factory reconditioned machines and sometimes new units for decent prices. I would rather buy new, but there are enough machines that come DOA that have a bad piece of hardware that they can easily replace and sell and offer some warranty on - but they cannot resell as 'new' that it might be an alternative.
If you do not have office software - look to OpenOffice.org - just as good as MS office sans the email program (compatible too), get AVAST anti-virus and ZoneAlarm freeware firewall, and you will be well on your way without the software costs normally associated with setting up a new PC.
Good luck,
Pete
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