As above, the home button on my 3GS has stopped working, only had the bloody phone about 2 months, will they replace it?

Course they will.

Thanks for the reply, but will they replace it with new or a reconditioned one?

Probably a reconditioned one though your warranty will transfer over onto it and the recons are in new condition

Take it to an Apple store and a genius will probably book you in and sort it.