my iPhone 3GS has a HUGE line of stuck pixels/broken INNER screen... What do I do?

Hey everyone, I'm new here with a big question to ask.

I was taking my iPhone out of my pocket one day when I realized a hairline crack inside the screen. it eventually progressed to what it is now. Here are some pix.

I bought this phone january last year so it should be under warrenty. This is NOT a screen crack, it is some interior crack.

Thanks!