Ipnone 4 only works with speaker phone

I receive calls but cannot hear the caller unless I use the speaker phone
I have rebooted and just reinstalled the latest software and tried plugging and unplugging the headphone jack.
Has anyone experienced this problem and found a fix?
Phone is still under warranty but such a pain as it has to be sent away if its a hardware problem

My fiance is having the same problem. We both got new iPhone 4's from Verizon less than 3 weeks ago. Now her speaker stopped working! She can only talk on speakerphone. Verizon is not allowed to try to fix or replace it and both Apple Stores are over 45 min away!!!!! Makes me happy my laptop is a PC. Appointment at Genius tomorrow. This is a huge inconvenience.

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