iPad 2 loses touch response in particular area of screen

My wife's iPad 2 is having a weird screen/touch issues. In a particular part of the screen (near the middle bottom on the left side if holding in portrait with the home button down), it just doesn't respond to touch, most of the time. Some things we saw were: * can not move icons above a fake 'line' on the screen, they just drop back to where they were or near by * When using a drawing app, you just would not get lines here (Paper actually thought it was more inputs, and kept doing that redo gesture) * Maps just stutters when you hit that point, but works fine The area seems to move/grow/contract, which is really odd. I feel like this is due to touch response in the app we are using, as in, icons on springboard are aligned to a grid, maps doesn't expect constant input, etc. At one point, the display seemed to loose its mind. It was registering multiple taps, responding to taps in areas we didn't tap, etc. I tried restoring the device, but that did not fix it. I figure this is a hardware issue, but not knowing too much about screens on the iPad, what would have to be replaced? Most of my searches just say 'take it to the Apple store', but I am looking to see what would have to be replaced and how much it would be, to determine if it would be worth repairing or just replacing. **Update:** Here is a video (not mine) that has almost the exact same issue http://www.youtube.com/watch?v=797bfjbEEi8