My iPhone will not wake up

Hi I'm in the UK, and my iPhone arrived yesterday from the online Apple store, I activated it with no problems, even transfered my previous number from Vodafone.
I then set up the phone with my contacts and connected to my home wi-fi.
The phone was working fine, until later in the evening. I activated the camera and tried to take a picture. The phone would not take a picture and displayed a message that said there was no room to store photos.
This was odd as Itunes showed that there was over 7gb available. I then tried to use the camera again, every time i tap the camera icon the "shutter" image appears and the phone reboots.
Since then a bigger problem has appeared, the phone works fine (apart from the camera) until you lock the phone, either by pressing sleep/wake or by Auto-Lock.
Once the phone has locked and the screen has gone blank, it is impossible to wake it. The sleep/wake button does nothing as does the home button. The phone is still turned on, as when I try to call the phone from another, it doesn't kick straight into voicemail.
The only way to get the phone working again is to do a full reboot by holding the home and sleep/wake buttons down until it restarts.
To fix this i have tried removing all the content, resetting (Settings > General > Reset > Reset All Settings) and finally restoring the iPhone using iTunes (both using the backup and without).
None of these have fixed the problem, which leaves the phone unusable, unless I never lock it and/or try to take pictures.
Has anyone else had these problems, is my iPhone faulty?
I would be most grateful for any assistance or suggestions.

I have just contacted apple about the problem on my iPhone.
As a full restore doesn't seem to fix the problem, they have agreed to replace my handset.

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