Here is a random and frustrating story for you guys... This week I went on vacation and on my way to the airport i realized my touch screen was not working, but only on the bottom row of the screen (everything else worked fine). I didnt use the phone the whole trip and upon arriving home I brought my phone to my local store to consult a "genius". He plugged my phone in and while doing so must have accidentally hit the camera button, which he noticed was not working properly either (the images were coming out all green and distorted almost like in the movie the predator). However, this camera problem was going on since the first day I got the phone, and I forgot to mention it since i never use it. He then removed my sim card and said the phone had been water damaged and could not be fixed under warranty!!! He showed me moisture on the sim card which had actually started to rust slightly and had a greenish color to it. I was shocked! BUT here is the best part: I have NEVER gotten my phone wet! I was furious, and he told me there was nothing he could do... After spending hours on the phone with apple care and arguing with 10 different ppl I found this thread regarding the indicator in the headphone jack. Well, I checked mine out, and it is completely white. (The Genius in the store didnt even mention this thing, nor did i see him look at it.) I finally got a hold of someone at apple care who actually seemed to care, and he set me up with a repair order and told me to send it in w/o the sim card. However, he said that they can still refuse to repair the phone if they feel it is damaged by water. After this call i received a call from one of the "product specialists" who I had originally spoke to, and he said that i could send my phone back if I want, but he had spoken to the Genius in the store that had turned me down originally, and they were positive that my phone was damaged by water and would likley be sent back to me by apple.---SO NOW APPLE IS CALLING ME A LIAR, OR THIS GENIUS HAS IT OUT FOR ME... Anyway: I sent my phone back today, but was wondering if anyone knows what may have caused this condensation to build up on my sim card? i.e. battery leaks, or any other liquid filled hardware in the phone. Also, I'm worried that apple will just read the product specialist's notes on my account regarding my complaint, and just assume that my phone has liquid damage. I AM POSITIVE IT NEVER GOT WET, and i want to ensure that they will actually open the phone and check this out, rather than just base their decision on this guy's word, and send it back to me. If they do send it back, is there any way for me to tell if they actually examined my phone? Sorry this post is so long (I actually left out a lot of the minor details to shorten it up). Please let me know your thoughts on this.... I will update you guys when I hear from apple, once they receive my phone.