I have had three iPhones replaced because of problems, but no recalls. In every case the new/refurbished replacement worked as well or better than the device it replaced. Personally, I would back up the iPhone to my Mac, delete if from the list of devices in iTunes, and then get me hence to the Apple Store for a replacement. If you elect to setup the new phone yourself you should be in and out of the Apple Store in under 15 minutes. Just be sure to register the replacement phone on iTunes and restore from the backup you made immediately prior to going to the Apple Store.
