So today in the morning I took off my smart cover and noticed that there's a pretty gruesome scratch on my new iPad where the smart cover meets the iPad. So it looks like there is a piece of metal coming through the rubber strip on the magnetized part of the cover. I called apple and the representitive said he had never heard of this happening. I looked online and found a few similar stories with this happening to some iPad 2 owners. I made an appointment at th genius bar tomorrow. I am hoping they replace the iPad and smart cover. Here are some photos.