Just called AppleCare for the problem, I'm gonna ship the iPad on Monday to them. She made it sound like it's going to be 'repaired', but I thought they just automatically replaced it instead of repairing them.
They will replace it. You send it in, they inspect it to verify what isn't working and if it is covered under warranty, and then they send you a replacement iPad.
I have been having the same issues. I have to reboot to get from app to app or screen to screen. Home button seems to work ok when plugged into the dock, but once unplugged - no more home button at all. Wonder if I can just take it back to best buy or just call Apple?