Apple will exchange you iPad 2 for a refurbished one for $249. The do not repair yours
A third-party place like the following maybe less. Google for more.
Replace the screen yourself
BTW you posted in the iPod touch forum.
well the easy way buy the parts you need so a screen and then open the bottom screws and then lift the screen up and then put the new one on then screw it back up carefully and tightlly however if you can't do it for so and so reason then take it to the apple store they will take about £80-90 or in dollars about $120-140 and it takesabout 1-2 weeks.
by the way thats what i did and saved money if it is hard then take it to the genuis bar.