The little mute button on my phone broke off. I could still switch it with something pointy. Asked about it over on the forum and folks said I had a good chance to get it replaced if I went to an apple store. It was VD and they closed friday because of the snow, so the place was packed. I had to make an appt and we walked around for an hour.
The guy looked at it with one of those things a doctor uses to look into your ear in the headphone jack and by the dock. Said no water damage and pulled out a new one to replace it. I signed a sheet saying it was cool to give me a replacement and that was it.
That is really cool for apple to stand behind their product like that.