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I am in the same situation, the EReader I got from Dick Smith Electronics in December 2010 has been deteriorating over the last few months...sometimes when turned on there would be corruption of the data on screen (missing lines and pixels), then it would be okay again. Then about a month ago I had it in my camera bag with my expensive digital SLR camera, screen facing wall of the bag. Pulled it out to use it and there was an internal crack in the e-ink screen. Took it back to DSE (it was 7 months old, and my wife got an extra 2 years extended warranty...total cost for this fairly mediocre item was near $300), and they say it is a "non-warrantable fault". I say it is poor tech, not fit for purpose. Promised them I'll spread the news of their lame customer service and dishonouring of warranties as far and as wide as I can! So, Dick Smith warranty holders, don't expect them to stand by the products they sell.
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