3gs touchscreen issues after 4.0.1 update

I recently updated from 3.1.3 to 4.0.1. It all went great, and I set it up as a new iPhone instead of a restoring. All is great, fresh clean iphone installation, right? No. Now my touchscreen doesnt work along the bottom, and is off-calibrated. For instance, if i hit the letter G on the keyboard, it registers as D. If i hit the letter A, it registers as L (weird right)? Im out of warranty, can apple fix this?

It's hard to tell if its a hardware or software related issue that you have run into.
First thing I would be doing is a fresh build of the phone again to make sure something didn't happen during the update process of loading the new operating system.
I would delete the .ipsw file that is on the computer (this is the package you downloaded from iTunes with the update) and then once deleted, turn on iTunes, plug in the phone and then sync everything that you want after the restore. Exactly like you did last time.
Once you have done that, hit Check for Updates in iTunes, this will then be forced to re-download a new copy of 4.0.2. (just in case the original was corrupt. Longshot but just to be sure)
I prefer the option of download only, rather that download and restore.
Once downloaded, restore to 'new' again and see if the problem is resolved.
If this doesn't fix it, I think it is an issue for Apple to solve as it's probably a hardware failure.
Location:
Mac: ~/UserName/library/itunes/iPhone Software Updates
Windows should be C:\Document & Settings\UserName\AppData\Roaming\Apple Computer\iTunes\iPod Software Updates
Remember, if using Windows to turn off Antivirus and Firewall before you try to update the phone
Hope this helps.

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