According to this:
http://terrychay.com/article/amazon-...-failure.shtml
amazon claims that DIAGONAL damage is caused by impact and not covered under warranty.
According to this:
http://www.amazon.com/forum/kindle%2...=TxTLTXFEMNEE8
amazon sometimes replaces kindles with damaged screens.
Apparently, it depends on who you talk to at amazon.
As requested by DustyDisks, we need to see a picture (or at least a description) of the damage.