Help! iPhone with failed wi-fi

I got my iPhone 3G about 4 months ago and just 2 weeks ago my wi-fi just gave up on me. I brought it back to the service centre and because there is a crack, about half a cm, at the bottom of my back housing, near the dock connector, they are unwilling to take it in for a free one-to-one exchange and instead, I've to fork out SGD350 for a replacement set.
Would anyone be able to give me some advice on whether I would be able to still get a free one-to-one exchange or will I have to reluctantly part with my money?

It sounds as though they have already given you your answer. No one here can give you a better one.
Best of luck.

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