I just got off a 2 hour phonecall with AT&T. They refused to send me any sort of policy stating that my warranty could not be honored, they also kept trying to bump me to blackberry for troubleshooting/replacement. They told me that they cannot verify the problem over the phone and therefore would not honor the replacement request.
I'm over playing these games with them. I have filed a complaint with the BBB as well as called my CC company to have the original purchase reversed and am now looking at Verizon. Problem solved.