Sleep/wake switch thinks it's stuck but it isnt?

My new iPhone 3g behaves like the sleep/wake button is stuck down despite the button not being stuck down, the button physically clicks when pressed but only functions as desired intermittently, when 1st activated the slide to power off screen appears without the button being held, and when the phone goes into sleep mode the phone goes into a restart cycle. Often when the button is pressed nothing happens at all, and often when the home button is pressed as screen shot it taken as if the button was stuck down. (My camera roll is filling up with shots of the home screen!)
Oddly enough while the phone is charging the sleep/wake button behaves normally
Things I've tried:
Restore
Update
Clear all Setting
Clear all files
Does anyone have any offerings?
Help would be greatly appreciated
Thanks

I'm sorry to hear that this happened to you. You need to make an appointment and talk to a genius at your local Apple Store. Be sure to back up your phone first, as the genius will probabily replace it. They have replaced my iPhone at least 5 times.
Good Luck,
Alex Carlson
The MacTips Podcast
http://www.mactipspodcast.com
(My personal website)

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