My iphone exploded near my ear and the phone is bulging like crazy

I just got an Iphone 3Gs about a week ago (although second hand from my uncle, but in very good condition).
Two days ago, I had the first problem which was the right headphone stopped working - I believe unrelated, but, I am trying to list every problem/oddity and the timing is suspect!
Yesterday, I recorded a voice memo and it was very quiet, then, whilst in the car, I tried to do voice dialing and the phone just turned off (tried several times and after the fourth, it actually worked).
Today, when I got to work, I saw that the silver trim on the front had come loose at the top right corner and the screen was poking out ever so slightly.. I have been so careful with the phone and I couldn't work it out as it seemed bent rather than broken/smashed etc..
Tonight, my phone rang and as I went to answer, there was a massive bang that scared the life out of me (and hurt like crazy)... I then noticed that the phone has completely bulged to a square outline which I believe is the battery.
It is turned off and I believe it is still expanding.
I am very concenred (and in pain!) and have found numerous other similar stories of bulging batteries but was wondering what outcomes other people have had or if anyone can offer any advice to stop it from expanding further.
Thanks,
William    

Get it out of your house. There is nothing you can do to stop the chemical reaction that is making the battery expand and it may pose a fire hazard. Make an appointment at the genius bar and take it in to see what they say.
The vast majority of expanding or exploding batteries can be traced to either liquid damage or faulty repairs. If it is under warranty, Apple will replace it. If not, they will probably offer you an out of warranty replacement. Without knowing the history of the phone in detail, it's impossible to say what the root cause was.

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