Horizontal White Line Right Across Screen iPod Classic 120GB

I bought an Apple iPod Classic 120GB 14 months ago. I have looked after it very carefully (it hasn't even left the house) and only used it sparingly. Last week an annoying horizontal white line appeared right across the screen. I have tried all the recommended including resetting it.
Having trawled the internet forums and asked at my local Apple franchise dealer this seems to be a common fault with the screen hardware. I gather I can expect more line to appear over the next few weeks. I followed Apple's online repair procedure and once I ticked the box for 'screen problem' there is another drop down box with about 4 options. One of these refers to horizontal or vertical lines across the screen so Apple must be aware of this fault. At the next stage I was advised that I must pay approx £95 before the iPod could be repaired or replaced.
I subsequently phoned their Customer Services Department in India to ask why I was being charged so much for what was clearly a manufacturing fault and was told that they had no authority to offer discounts for repairs. Having asked to speak to someone who could help I was put through to Apple in Ireland.
The person I spoke to again repeated that Apple would only repair the iPod if I paid £95. He claimed it was a very rare problem but they were aware of it. I suggested that if this was true, surely they would want to replace or repair the iPod free of charge or at least for a reasonable price. The answer to this was no. I asked how long they expected iPods to last as 14 months did not seem very long. He said that he couldn't answer my question. I would have thought that it was reasonable to expect a life cycle of nearer 5 years for an high quality mp3 player. I feel that if an iPod fails after only 14 months it is hardly fit for purpose.
Has anyone else experienced this?

this is the exact same problem as mine (mine is classic 80GB) :[
it started happening out of nowhere, for no reason too. it happened 10 days ago, and ive had it for 2 years 3 months
in addition to the line across my screen, there are some scattered dots above it that move around everytime i turn off my ipod and turn it back on, which is really odd and at first funny but now just very sad.
please please tell me if you find a solution (minus the huge fix cost), and/or email me at [email protected]

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