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Where are you? UK, US, somewhere else?
Some points:
1) You really don't have a right to a defect free screen - the screens would cost twice what they do now (or more) if screen makers kept to that standard. One or two dead pixels on PDA sized screen (out of 76,800) would be perfectly reasonable.
2) What you apper to have, however, is a stuck pixel - permanently red - and in a central position. In the UK you would have the right to reject it, having examined it on opening. Even one stuck pixel, where it can always be seen, should be enough for rejection. Manufacturer's warranty shouldn't even come into it.
Outside of the UK I have no idea what your rights might be though.
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