IPhone screen problem.  Options?

My iPhone recently developed a touch screen problem. A small portion of the screen will not recognize any touch.
The dead portion is all the way from the left to the right of the screen, about 1-2 cm tall, and is located just above the halfway point.
I bought this iPhone last year at the end of june. Up till now, I have not had any problems that a reset couldnt fix.
But this seems more serious.
If I bring it in, what options will Apple give me? It is under warranty.
In the past I have been to the Apple Genius Bar and seen tech reps hand over a brand new iPhone for issues. But since they dont stock iPhones anymore, is this still a possibility?
I will not pay for a refurb since its under warranty.
Thanks

I have a first generation iphone that all the sudden would not respond to any touch on the home screen, but would respond to powering off. It would also respond to the ipod play menu on the lock screen. Because my iphone is out of warranty I descide to get the 3g iphone and just my luck as soon as I go to play with my new toy it does not respond and when it does respond it does what it wants to. If i push settings it wants notes. I have to slide my finger up and to the right in the middle of the screen in order to turn the thing off. Hopefully my luck changes to good when I try to get them replaced.

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