Strange iPhone 3g Button Issue

I have a bit of a problem with my iphone 3g (bought on day of release Aug 08). Basically, I was using it yesterday, listening to a podcast or somesuch and for some reason when I tried to operate it I discovered that the hold/power button had stopped working at all (it doesn't do anything, even if I try to do a reset).
My first thought was that there is a hardware issue and that there was a loose connection for some reason (I'm pretty careful with my iphone and have never dropped it or anything) but I then discovered that the volume buttons and silent switch had also stopped working completely.
Since I discovered this, I have tried doing a total restore and have left it over night but to no avail, the buttons are all not working still, though the Home button does still work. Has anybody got any thoughts or ideas? I'm guessing I will have to go to the Apple Store to have them tell me there is nothing they can do as their products should only work properly for a year but would love to avoid the heartache.
Thanks in advance.

Thanks neuroanatomist, I appreciate your advice, I figured that may be the case, I was just wondering because of the fact that more than one physical button stopped working and nothing happened to the iphone that might suggest a change. I will probably have to shell out for a replacement I'm sure, just a bit disappointed that the phone hasn't even lasted the length of my contract with O2 (I'm in the UK). It's pointless bleating I know, but as someone who owns 3 macs, an iphone etc, it's at times like this I wish there was a viable alternative.
Does anybody know how much the out of warranty replacement costs in the UK? Or if they even offer it?

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