Droid won't turn on! I've tried everything. Please help!

Hey all,
I am super stressed about this! I have had my Droid about 7 months and I have always had little problems here and there. For example, when I went to open my text messages, my internet would open. Or I go to open the navagation, and the camera opens up. Etc. Etc. There is obviously a short with my phone, but I've never done anything about it. Keep in mind this has been acting up since I first got the phone. Anyway, I usually do battery resets and one time I even had to do a complete factory reset. Both of those have worked in the past. But a few days ago, I dropped the phone about a foot (not in water, and nothing broke). I just was holding it and it slipped from my hand and seriously only fell a foot. No joke. ANYWAY, ever since then, all hell broke loose. The phone worked good right after that, and a few hours later the backlight that illuminates the phone was blinking while I was using it. And eventually, I went to use it, and the light wouldn't even turn on. I could tell the phone was on, but I couldn't really see anything because the light wouldn't turn on. I tried battery resets, probably about 10 of them, and nothing. Nothing would fix it. SOooo eventually my battery died, so I pulled it in, and the little white charging light came on, but the phone would not power on. I've had it on the charger on and off for hours at a time and I still get nothing. The little white charger light comes on every once in a while. Also, no obvious water damage, and no cracks or anything. Verizon is mailing me a new one because I live in a town where there is no store (Stupid, I know). They want me to send them my broken one so they can inspect it for damage. I am soooooooo paranoid they are going to charge me for the phone! First of all, I have had problems from the VERY BEGINNING with this damn phone. So there is nothing I did to cause this. I know dropping it, obviously, wasn't good for it, but I've dropped it before, and I think a phone should be able to drop a foot and NOT break, right? Anyway, I am super nervous to send it back. They said if it's damaged, they charge me the full retail price of $500. #$@*!! I can't afford that! I'm a poor college student. Any words of advice? Does anyone know if they actually PULL apart the phone and completely inspect it? Or do they just pull apart the back and look for water damage and other damage over the phone? Sorry for writing a novel! I'm freaking stressing here! HELP! HELP! HELP!