o2 told me exactly the same thing with the exact same picture and exactly the same repair cost and tried telling me I should have bought their £10 a month warranty and if I did I wouldn't have this problem blah blah when my new iPhone 3GS just died after 34 days of buying it with absolutely no way of it being water damage.
Booked an appointment with one of the apple stores geniuses and not long after gave me a brand new replacement.
Booked an appointment with one of the apple stores geniuses and not long after gave me a brand new replacement.