What are my options considering my phone is pretty much dead?

So today I was carrying my MacBook and my iPhone through my bathroom while txting at the same time. A little slip of the hand and next thing I know my iPhone is in the toilette and I am scrambling to get it out. A few hours later and my phone has gone from originally just not having sound coming from the external speakers to being completely unfunctional. My contract doesn't end until early February, and considering they won't just give me another iPhone 3G, what are my options as far as having to buy a new phone? Would I keep the same contract (I don't want to be locked in for another 2 years with the 3G)? Should I look into going ahead and upgrading to the new iPhone 4? If so, what would I have to pay as far as a termination fee is concerned?
I know its a lot of questions, but any help is appreciated.
Thanks

My iPhone 3G was "damaged" (result = the wifi stopped working) and out of warranty. When I went to the Apple store, they said they had a "hardware replacement program" and it would cost me 229$. That was only a month ago, so I am waiting to see what happens here(Canada) in terms of the 4. Perhaps, there is something similar in your area.
Message was edited by: Thomas McPhee1

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