My smart cover is scratching my screen and will not put my ipad to sleep what should I do?

Ever since I got my IPad the smart cover half the time does not put the Ipad to sleep. Also, the cover is scratching my screen. This smart cover is really causing me to regret my decision to sell my IPad 1 and get the second generation IPad. Also, Safari is and some of the other apps are constantly crashing, I am getting really frustrated where should I go from here the apple store has not been much of a help?
P.S.
I hope that this is not like the first generation Apple TV I bought which has never worked correctly (waste of 220 dollars).

Try:
fix for Home button
iPhone Home Button Not Working or Unresponsive? Try This Fix
- If you have iOS 5 and later you can turn on Assistive Touch it add the Home and other buttons to the iPods screen. Settings>General>Accessibility>Assistive Touch
- If not under warranty Apple will exchange your iPod for a refurbished one for:
Apple - Support - iPod - Repair pricing
You can do it an an Apple store by:
Apple Retail Store - Genius Bar
or sent it in to Apple. See:
Apple - Support - iPod - Service FAQ
- There are third-party places like the following that will repair the Home button. Google for more.
iPhone Repair, Service & Parts: iPod Touch, iPad, MacBook Pro Screens

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