Just outside of my warranty and my Macbook Air is faulty! Help!

Hi all,
Just wanted to know if anyone is or was in the same boat and if there was any options open to me here without forking out for expensive repair costs.
Macbook Air purchased November 2010. 11 inch 4 Gig model. Mac OS X 10.6.8.
My Problem... (LCD Display Faulty)
1st Problem: Been absolutely perfect until about 4 weeks ago. First I noticed a few small red dot's appearing on the left of the screen, as far as the screen will go which only apear on darker colours. These red pixel dots only appear after the Macbook has been on for about 20 minutes or so. They will dissapear when you close and re open the lid but then will re appear 20 minutes later. The longer you use it the worse these red pixel dots get and they even start flashing. This has got worse over the last 4 weeks.
2nd Problem: I have just noticed after these red dots the right side of the screen is a slightly darker shade than the left side. Split exactly in the middle of the screen. Noticed this on boot up last week and is particuary noticable on blue and grey coloured screens. Eaxactly the same problem as these guys had here https://discussions.apple.com/thread/2791453?start=0&tstart=0
What I did...
Tried reinstalling software etc which didnt rectify anything so I booked an Apple Genius Bar appointment today at 12:20 at the Apple Store in Birmingham (Bull Ring). The genius confirmed this was a faulty screen and it would have to be replaced.
One Problem... My Warranty ran out November 8th. Just under 2 months over the warranty. Guess what... They said they would not replace it and I would have to pay just under £400 to get it fixed. They were not prepared to help in any way.
I expect a £1200 laptop to last longer than 14 months without developing a fault and even if it did at that price I certainly would be expecting the retailer/manufacturer to repair free of charge especially when they have confirmed it is a manufacturer fault. A £300 Asus Notebook then I wouldnt mind.
I quoted Sales of Goods act to the Manager in the store and she said the Sales of Goods act doesnt apply because it has to be reported within 12 months and Im only covered for up to 6 years if the fault was reported within 12 months.
HELP... Advice?
Has anyone had experience with out of warranty repairs? Has anyone any advice? (Forget the buy the extended warranty wise cracks) I can't afford to buy warranties on every electrical item I purchase for my houshold.
This Macbook is less than 60 days out of its warranty is there anything I could do? Or even any simple repair solutions? Tried the stuck pixel fixes which didn't work.
Many thanks in advance.
Joe.

Thanks Allan,
Allen to be honest after visiting the apple store today I was hoping to get some sort of compremise. Like I pay for the labour or something hoping to be around £100ish but no. I had a grinch. She was not prepared to help in any way....
I have onother Apple store in Sollihul. I could pay them a visit I supose. There all like 30 miles away though and a 60mile round trip like the one I have had today has drained my energy!
I just wanted to see if anyone else has had the same issues and Im glad to see you managed to compremise.

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