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Ok I've just realised something. I said my touch was fine in that it didn't have any screen issues, but I only tested this after applying the 1.1.1 update. Is it possible that this update to the firmware has 'hidden' the hardware problem? If so is there any way I can remove the 1.1.1 update and test it?

You know...if you think the screen looks good, I wouldn't worry about it. Find the Jay-Z Black Album cover pic here (in a thread called "absolute BEST way to tell if your screen is defective" or similar), download to Touch, and view. If you don't get a negative or "shimmery" black at any viewing angle, you're fine.

Also, if you don't find video brightness/detail is NOTICEABLY improved by tilting the screen back-left (my Wk 37 & 38 were just so-so unless you did this), don't worry.
 
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