HP has posted its policy on LCD panel replacement for the iPAQ Pocket PC and HP Mobile Media Companion devices. If you have 4 or more bright sub-pixel defects, 6 or more dark sub-pixel defects or a combinate of 6 or more combined bright and dark sub-pixel defects, HP will replace your LCD screen under its warranty.
It’s good to see HP clearly state what its policy is but I would be pretty upset if I had 3 dead pixels on a new iPAQ and found out that HP did not consider that worthy of a warranty repair. Sony had some pretty upset customers when its PSP came out with many having at least one dead pixel. Fortunately, I’m now on fourth iPAQ (assuming I can still count and remember properly), and I have never had any LCD issues.