This morning a grey bar appeared on the screen and is not going away. Restoring and rebooting does nothing. The bar is there constantly even during reboot. Anyone know what this is? Help! Please! Panic!
if you are not jailbroken, and you either have Apple Care purchased or you are within your first year of owning the phone new, you need to take it in to Apple.
Looks as though part of your scree has failed. Before making an appointment with Apple, Use a small flashlight and look down the headphone jack and around the dock connector for anything that looks pink or red. If there is, that is indication of water damage and Apple will void the warranty the moment they see it. But if everything looks good and no red or pink, make the appointment and they will either repair or swap out your phone.
Thanks for the replies confirming my worst iPhone fears. The outage are is under a crack that occurred when I dropped it. Unfortunately, it was a year since purchase in January and it was also jailbroken. Fortunately, I also have already moved on to Droid where I no longer have to battle Apple for basic functions like LED notifications and a status bar that tells you what you have without looking at the home screen. I gave the iPhone to a friend, so it's more unfortunate for them.