In spite of it being a known defect and announced by the Finnish developers before the launch, now that the 1st generation phones are experience=ing this problem APPLE IS NOT REPLACING THE PHONES and the cost of repair if the cost of the new 3G phone! Sounds like a scam to me with a $400 phone that fails after one year, especially tight after the warranty expires! If anyone knows of any known fixes or is able to remedy this proble please let me know.

I live in Spain where the iphone has not reached us yet and as a consiquence i purchased an unlocked phone. The phone has worked perfect upto today when i droped it. Since then the bottom half of the screen is unresponsive to touch. I would like to know if i took the phone to an apple store if they would replace it for free.

yea i got my ipod touch on christmas , i only had it for a few days and now the bottom part of the touch screen doesnt respond anymore. this is a serious issue! 

luckaly i can exchange it.

When I realized my phone was dying and unresponsive to my touch I was mad. Then when I read all about the problem and how the issue had been known about by the Finnish developers possibly prior to the launch - I was furious! But, the next day when I brought the phone into the genius bar at the mac store I was given a new one immediately and my love for all things Apple restored. My only concern is that this will happen again in a few months, as it seemed from the info out there I read about this that it was an inherent flaw in the technology of the touch screen. As long as they keep fisting over new phones Apple might have a new niche in the cell phone market...the lifetime phone!