^^^^ LOL - with a picture of a cover from iTunes... 
This has happend with the first Touch's and the first 3G (?) phones - just bring it in and Apple will replace them on the spot...
My old iPhone had this. Waited a few months until the warrantee was about to expire and then brought it in. Replaced on the spot, new 1 year warrantee (that I needed when another problem developed with the replacement). Good way to get a new shiny one after yours gets all scratched up over time (if we are to believe Engadet).
This has happend with the first Touch's and the first 3G (?) phones - just bring it in and Apple will replace them on the spot...