iPhone 3G one row of touch screen not working - DIY fixed!
If you don't care about violating the warranty or if you phone is already out of warranty, you might want to check under the "hood" to see if one of the ribbon cable connectors has disconnected as a result of the impact.
In my case, I removed the two Phillips screws from the bottom of the 3G and used a suction cup to pry up the touch screen (or use a case opener but the suction cup worked just fine). The ribbon connector labeled "4" was not fully connected so I pressed it down again, buttoned up the phone and it was working perfectly again.
Hope this helps and maybe saves you a trip to the Apple store or a costly screen replacement.
iMac 24" mid 2007, Mac OS X (10.4.10), 2.4 Ghz, 4 gig, 320GB festplatte