I have sort of the same issue, but different area:
Dead area of the iphone touch screen for me aswell. I would say its a cm wide? across the middle of the screen.
4,5,6 phone keys do not work anymore for me either.
This then falls into selecting emails, wifi access points, accepting itunes password from appstore, moving icons on screen(from say top to bottom or vice versa, etc. etc..
Unfortunately, my iphone is out of warranty (I bought it on day 1). I bought another iphone cause I thought I bricked my first one, but then fixed it, so then I had 2 original iphones. I used the one as an ipod for the car, long story short, my car was robbed, and they got the iphone, which was the newer one, that I thought I had been using.. So I thought the warranty was still good until a few days ago..
*What I do in order to click on things I can't touch is, jailbrokn phone with veency installed(vnc) that I connect to on the screen of a computer, and use the mouse... It is pretty kool to see and control the iphone on a computer, try it out,*
Message was edited by: NextLevel