8GB iPod Touch has developed blueish bar 1 inch wide starting at the bottom

I have an 8GB iPod touch I purchased in August of last year. Until yesterday the iPod was working well. While online last night a blue block stretching from the bottom of the screen up about one inch appeared covering the bottom task bar and the complete lower set of letters when in portrait mode. I turned off the ipod, let it set overnight. Restarted, then completely wiped and restored and the bar persisted. I can touch the lower part of the screen and it selects fine, I just can't see what I'm selecting. I use my ipod touch for all of my calender syncing and it is very important that I can get this fixed soon. Again, I have gone through all the restore features and even before I restore the ipod the line still persists. The link included is pictures of the screen on my photo bucket. http://s638.photobucket.com/albums/uu105/schaia01/iPod%20Touch%20Screen%20Issues /

Try the sstandard fixes:
- Reset. Nothing will be lost
Reset iPod touch:  Hold down the On/Off button and the Home button at the same time for at
least ten seconds, until the Apple logo appears.
- Restore from backup
- Restore to fctory defaults/new IPod.
If y still have the problem then an appointment at the Genius Bar of an Apple store is in order.

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