Hi, I'm on the very same case of you. My screen just broke itself, I bought the PRS-505 just 2 weeks ago and has been used 4 times on these few days!
It now has some horizontal and vertical lines and a blurred zone on the upper-right corner which makes the unit unusable.
It's a UK unit and I have been very careful using it. I'm going to get it to the Sony support service and I hope that this problem can be covered by the warranty.
Why do you think that this can't be covered by a warranty repair?
I'm really worried and upset about this problem. Now I have the sensation that these are very fragile devices.