IPhone 3G that makes no sound.

Question

So I bought an IPhone yesterday. I had bought one for my mom when it was already launched and was pretty impressed with the performance. It still works without any flaws. But the one I bought yesterday has one unique ability - It makes no sound from the speaker.
I did some research on it to know that I must plug and unplug the earphone a few times for the speaker to work.It didnt.
Somewhere they also mentioned that I should reset the phone with the home button pressed along with sleep button. It didnt work.
Now I have no clue what to do but to take it back to Airtel(the place i bought it) which is the authorized dealer for Iphones. If they tell me it has to be shipped to the service center(in another city) for repairs I am screwed. I hope she replaces it on the spot. Any Advice? There is no service center in the city i stay in.
I think she should replace it because
1> i paid for a new phone and not a repaired one.
2> I am returning it back in less than 24hrs.
Message was edited by: Brightspark

Answer 1

Update - The restore option as well upgrading to the most up to date firmware has not helped the speaker is simply dead and I think this is hardware related.
I called up the Airtel store where i purchased this from and the cust rep told me that she would have to send the phone to Bangalore(another city) where the apple service center is and they would send a replacement handset.
What concerns me most is that she mentioned that all the other contents of the box would remain the same and that only the phone itself would be replaced.I am beginning to think that this may be a refurbished handset. If it is then I am being outright cheated as did not pay the price of a refurbed phone but a new one.
Is there anyways i can crosscheck or confirm that the set will be a new one?I think i should have just refrained from buying one instead of putting myself through all this crap and being without a phone for a week.