Particular sections on the screen irresponsive

Hi, its the first time I'm writing in here, please see there may be mistakes ( as such the writing parameters that are being followed in here. ), please consider

I own this real messy GT-I5500, which been a pain since the time I had it for the first time.
We'll for it's newest miracle, particular sections of the touchscreen are not working. I am a real rookie but guess I'll try to explain
at 0 degree , the whole of 3rd row dosent respond, and particular section dont respond accordingly when the screen is turned at 90,180,270 respectively.It really makes typing impossible.
Just for the records I have rebooted,reset-ed,downgraded to froyo and tried lots of **** all over the net ( which even includes hovering a magnet to unlock screen as my lock screen ring earlier was lying in the no response region ).

I understand my phone would require an appointment at the service station, can someone elaborate the problem to me basically because
1. I do not trust them , they really sometimes employ classy noobs.
2, If I require to change the touchscreen, acceptable, but is it sure that it is a hardware problem.
3. has anyone got a screen changed, I'd love to know how deep will it burn my pocket

I reside in India. Help will be co-ordinally appreciated.
Thank You

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