1/3 of the screen shows nothing but black

I searched all over the internet, and I am afraid I am the only person who has encountered this problem.
I was watching a movie through air video, and the video freezes. When I hit the home button, 1/3 of the screen is still showing the frozen frame of the movie. No matter what I do, that section of the screen continues to show the frozen frame.
I turn the iPad off then back on, that section now is completely black. The iPad works fine except for that section showing nothing.
I have gone into general settings and reset, and I have held home and the lock button to reset as well. Nothing has worked.
How can this be? Did the application fry the video connection or the display? It seems quite impossible for an application to affect hardware this way. I am also overseas in a country where the iPad has not been released yet, I feel very helpless. Please help.

Next try is to connect to your computer and do a wipe and restore. First try restoring from you backup (iTunes makes one automatically). If that does not fix it do a wipe and restore to factor new configuration without any apps or dat/files installed to see if it works that way. If that does not work, make an appointment at an Apple store or call Apple Care.

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