Apple handles all warranty service for the iPhones in the US. You can call and they will ship you a replacement phone most likely. Or you could just make it a family outing and go to the Apple Store with the kids over the weekend (make an appointment at the genius bar first) and let them shop for cases and accessories for their cool new toys.
Apple will not send me a new phone until I send this one back, which means he will be without a phone for a week. Did I mention that the two hours was one way, plus an hour there and the two hours back, making it a five hour trip for a problem that Apple knows they have. And with the price of gas today, who pays for that??? Oh, I guess that is on me as well..
Apple should make this process a little easier when there is not an Apple store close to the customer.
Apple will cross ship you a replacement. They will require placing a hold on your credit card, but you will not be charged so long as you return the old one.
As for the drive, I guess it's all a matter of perspective. I make the drive from West of Cleveland, OH to near Pitsburgh every few months to take the wife to the outlet malls where there's no sales tax on clothing. I don't know whether it's a good thing or a bad thing that my wife usually manages to buy enough that I save enough in sales taxes to cover the cost of gas back and forth...