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Certainly sounds like a hardware issue, dfb. Maybe something came loose inside. If you're not still under warranty you may be interested in opening it up and looking around. There are directions in the wiki (wiki.ppcgeeks.com) on how to open it up.
I would make sure you pursue all warranty opportunities first though... once you open it up you'll mess up a security sticker on the back so they'll be able to tell that you opened it.
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