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I've heard pretty good things about Apple Stores and their "Genius Bar" service. At the very least, they should be able to clarify for you whether standard recovery techniques can fix it or not.
I had a friend who dropped his iPhone a few months after he bought it and it shattered the display glass. He took it to the local Apple Store, and even though he hadn't purchased additional protection to cover accidental damage, they gave him a replacement phone.
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