its an iphone 3g and the lcd screen has dead pixels. the only problem i have is that i still play these stupid online games on the iphone and they are all tied to the phone. so if i get a new phone the games will be lost, need to be transferred for stats.
If you're still in your 1yr warranty or you have Apple Care, Apple will replace your phone for dead pixels. If you do get a replacement, just makes sure you have everything backed up in iTunes and you should be able to restore from back-up and not lose any game/app data.