Thought I'd pass along a very good experience in getting my wife's 8g 3G repaired. It was out of warranty, she had dropped it into a cup of water (don't ask). I couldn't tell if the "water" indicator was actually red or not. After drying the phone in a bag of rice for a couple days, all was good except the phone behaved like it had headphones plugged in (i.e. the earpiece would not work -- so you have to use speakerphone to make a call). Researched the issue here and elsewhere and found out that problem happens somewhat frequently, even without the dunking. Tried all the internet remedies to no avail.

Faced with the prospect of spending a bunch on a used phone (eBay), praying that Apple might repair it (assuming the water indicator wasn't triggered) for $400, or trying a repair shop, I found Mission Repair. For $99 ($108 total with expedited shipping) I have a fully working iPhone back in my wife's hands in 48 hours (shipping from East Coast). Very good experience and I would defintely use them again. They also do laptop work.

Mission Repair website