iPhone Cracked, But Not What You’re Thinking
It's funny, people are wondering when they can use their iPhone on something other than AT&T. Apparently, someone cracked their iPhone, alright. I don't think this is the kind of "crack" they had in mind, though.
Carol on the Nokia S60 Multimedia Blog got a first-hand look at an Apple iPhone that got dropped. Check the picture out:

This kind of damage is not covered under warranty. The price to replace the screen? $249, nearly half the cost of the phone (assuming it was the 8gb version).