When I was in Brazil I woke up one morning and couldn’t “slide to unlock”. I could however hold the power button down and “slide to power off”. I did power off and power back on and found the iPhone would not respond to touch on the bottom 1/4th of the screen. The Phone, Mail, Installer, Safari & iPod icons I had in my dock would not work so I was using XLaunch to run them. I couldn’t really use the keyboard or hit the answer button when someone would call. I even went into a bad area of Brazil and didn’t bring my nice camera so it wouldn’t get stolen and I could just use my iPhone if I really needed too but I realized I couldn’t hit the capture button. :( I did figure out that if I hit it just at the right spot sometime I could get the “slide to unlock” to work. I had to wait until I was back in the states to go to an Apple Store and get a new one. I called and got an appointment and they swapped it our right away. They only asked if it had recently had any condensation. I said no. I did restore my iPhone first of course. I was also glad none of the staff recognized me. I’m surprised they don’t have me on a most wanted list. :) I’m pretty sure my new iPhone is brand new because the date is week 9 of 2008. I asked the guy if it was new or refurbished and he said he didn’t know. It is still an 8GB. It came with 1.1.3 and I upgraded to 1.1.4 and jailbroke using ZiPhone. You can track all the things happening with my new iPhone here.