The iPhone owner fell asleep for a few hours only to wake up with “extreme pain coming from my pocket.” Apparently during his sleep the iPhone overheated and actually burned his leg.
The owner said his iPhone was off and in his pocket, and he does not “think it was because it was pressed”. He also states that the phone was not jailbroken, the auto-lock was set to one minute, and the push email and 3G data were switched off.
Pictures of the iPhone seem to show some melted plastic around the dock connector. Also, the picture of his leg clearly show a red burn mark.
Apple is sending him a replacement phone.