I got my ebook after reading quite a lot of posts here, and decided that for reading research papers and doing research via note, the prs900 was the best match for it. I received it about 3 weeks ago, and have liked it very much. Pretty just glued to it for the past 3 weeks.

Today I accidentally put some weight in my bag, which had the prs900 in it. Now part of the screen does not display properly, but has black/white lines on it. Its still under warranty.

What are my options? Do I drop it off at some Sony store to get it fixed, and what are the costs for that? I read on their website that they send a "refurbished" one instead? Is that a good idea? Or can I sell it at some cheap price back to them, and buy a new one instead?

You're looking at getting it repaired, and your warranty doesn't matter unless you payed for accidental damage security.

The default warranty doesn't cover accidental damage, and it's not a defect as the screens are all fragile. Sorry, get a quote from Sony... It'll cost a bit.