Last night I noticed a crack beside the USB connector on my iPhone 3G. I called Rogers today and the representative said "well ..... I can send you a replacement and then you will have to send your phone to Apple. If they decide that the crack is due to abuse, you will have to pay $550.00 for the refurbished replacement that was sent to you. You can't send back the refurbished replacement." He said that if I had an Apple store near me it would be easier because I could simply take it in to the Apple Store and let them have a look at it. This sounded like quite a gamble to me. The phone currently works but the crack is quite large. I told him that I have never had a phone crack before and that the crack seems to be at a weak place on the back of the phone. He then told me that I could contact Apple directly to see what they had to say. Perhaps there would be a local genius that I could take the phone to.
So, I called Apple Care (1-800-myapple) and spoke to someone and I told her that I noticed a crack when I took it out of the case to clean it last night. She asked me where the crack was and I told her that it was at the USB connection. She asked me what kind of case I used and I told her that it was a soft silicone case. She then asked which way the crack went on the back case and I told her that it went straight up the middle. Then she said ... "no problem, this is something that we can replace under warranty"!!

So she is shipping out a replacement and then I will send back my old phone after it arrives. SWEET!!
Thanks Apple!!!
P.S. This picture was taken with my wife's new iPhone 3GS. Not too bad!