Bye Bye Zagg Folio ... Hello Belkin Folio
The wife and I got the Zagg BT Keyboard Folio cases and had a couple of problems such as mine not being for the 3rd generation iPad and hers messing up her Zagg Invisible Shield where the rubber bumpers on the keyboard rub up against the iPad. And the shield damage occurred within a day so we sent both cases back and continued our search for the "perfect BT keyboard case for our new iPads. Well there isn't one, obviously but we are both happy with the Belkins that we ordered from Amazon and had less than a week after ordering. Here is a link if you are interested in looking at what is working for us.
Amazon.com: Belkin Keyboard Folio for New Apple iPad 3rd Generation, HD, 1080P, WiFi, 4G LTE, AT & T, Verizon (Black): Computers & Accessories
Similar Problem - is your wife's iPad screen intact?
I've just discovered a similar issue with my invisible shield being damaged by the Zagg Folio case. Just wondering if your wife was able to remove/replace the shield and verify that the screen wasn't damaged underneath? I ask because the longer rubber bumper that runs across the top of the keyboard has left an imprint across the bottom third of my screen that is causing a rainbow effect when the screen is displaying white light. It's only in the imprint areas, so I'm pretty sure the damage is limited to the shield and that the screen is fine underneath, but as you can imagine I'm still a little concerned. I've contacted their customer service department, so I'm hopeful that it can be resolved soon. Would love to know that I'm not in for any unpleasant surprises when I remove the shield, though.