You can restore your new iPad from a backup of your old one in iTunes. Make sure you have an up to date backup before you exchange your old iPad by connecting it to iTunes and allowing it to sync.

Originally Posted by DefBref

You can restore your new iPad from a backup of your old one in iTunes. Make sure you have an up to date backup before you exchange your old iPad by connecting it to iTunes and allowing it to sync.

Thanks so much for the help.

Should I let them do this for me at the Apple store? or will this be easy for me to do myself?

And, how can I make sure ALL of my passwords are totally erased off of this defective ipad2? Will clear history & cache do this? (or do I need to change all of my passwords?)

No they won't be able to do it in store, you need to sync with your own itunes library.

You can erase all contents and settings on the ipad (once you've done the backup).

Originally Posted by DefBref

No they won't be able to do it in store, you need to sync with your own itunes library.

You can erase all contents and settings on the ipad (once you've done the backup).

Done!
I actually figured it out on my own. LOL. (I am actually starting to like Apple more than windows )

I called the Apple store and they said they would exchange it - no problem at all. Now I just need to find an Apple store in the area that HAS a white 32G iPad2....that will prove to be more difficult.
I will report back when exchanged.

While I am waiting on the Apple store to replace(get them back in stock) my ipad 2 because of the “white spot” on my screen I thought I would post a couple of interesting articles I came across. (just a couple of MANY on Google when I typed in “white spot on my ipad screen”)

Bright spot on screen
https://discussions.apple.com/message/13226058#13226058

If Your iPad 2 Has Display Problems, DO NOT Return It. Here’s Why
http://www.cultofmac.com/if-your-ipad-2-has-display-problems-do-not-return-it-heres-why/87197