iPhone 4 Speaker not working

Hi,

I received my iPhone 4 today and just finished registering/activating and loading it with all my music and videos and have discovered that my speaker is not working. Only time I hear sound is with the headset plugged in. Phone does not audibly ring either.

*I have tried the following steps with no result:*
Checked mute switch
Checked volume buttons
Ensured iPhone selected and not base station (WiFi speaker setting)
Plugged in and unplugged head phones several times
Cycled power several times
Soft reset
Ejecting SIM at home screen, powering off, turing back on and inserting SIM at home screen
Full Restore as new phone (not backup)

Still only have sound through headphones.

*System Specs:*
iTunes 10.1.1 (4)
iPhone OS4.2.1
iMac i7 OSX 10.6.5

So do I have a faulty unit? Annoyed I spent so long setting up and to have it not work properly at the end. 😟