There has just been a discussion of this over in rec.crafts.metalworking. I could be wrong, but after a quick look through the Sears website I found no mention of the Craftsman tool lifetime warranty anywhere. They used to hype it quite a bit...
Guess I may to have to start buying tools again, haven't done that since the 70's. I've just been returning the broken/worn ones over and over, it was a good deal!
Kinda of sad in a way, for years now that was the last remaining reason to go near their stores.
Erik