The rubber rails are what keep your phone from getting scratched. Do not put the phone in that case, replace it. Incase is a good case, there are very few horror stories compared to the "I love it" stories. I personally would be put off the incase due to the failure, but I'm sure you would be fine with another one. Another option that is similar is the Seidio innocase II. I've used one with my 3G and noww my 3GS for about 6 months and I love it.
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