Bottom half of my screen is white help please?

[Chaca]

Whats up guys. I love these forums because you all are amazing at answering my questions. I have an Iphone on Tmobile and it is a 2g 8gb. I had the firmware updated to 2.2 and everything was working great! today I was texting on it and all of the sudden the bottom half of the screen went white. It is not pure white but white and the top half works find its weird as well where the line breaks it from black to white it "bleeds" the colors straight down from the home screen icons of whatever I have on the screen. The bottom of the screen that is white works still. I can tap it and text and all that be it amazingly difficult without seeing it. I am trying to restore it and I did. It is currently in the emergency only screen and the problem is still existing. Is this a hardware problem? Is my phone lost? Any help would be appreciated thank you.

 

[Chaca]

Well after hours of searching and no I am going to restore it and take it to the store it is still under warranty. wish me luck!