'Dead' spot on ipod touch screen - 103 days out of warranty - any ideas?

There is a section of the screen that is 'dead' and it is where the cancel & ok buttons are - this means that I can't play games properly and can't download apps etc as I can't touch ok. I went to the genius bar and they said it was 103 days out of warranty so buy a new one or live with it! Have done the 5 Rs, no joy so it is hardware. Surely it is reasonable to expect that a product doesn't break down in this way after just 18 months? Is there any consumer legislation that can help me get it fixed / replaced? Thanks for any help.

I feel your pain. My 1st generation Touch lost Wi-Fi three weeks after the warranty expired. Apple said, "hardware failure" and told me they'd replace it with the same model for $129 or I could buy a new one. It cost $400 when new! I think it should last longer than a year and three weeks. I purchased the Touch on a credit card that has an extended warranty program. I'm working with the credit card company to replace the failed iPod.

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