Bicycle Mechanics - Busted bottle cage boss

After my ride this weekend I took my bottle cage off to clean up where the bottle had spilled over. When I went to put the bolt in it sort of got stuck and now just turns and turns but will not back out. It sticks out about 2mm from the frame and just sits there. Anyway to fix this or would this be a frame warranty issue? My bike is only 12 months. I'm really kinda mad about this.

Thanks! in advance.

Is the bolt the only thing that turns or is the fitting it screws into rotating also?

I'm assuming the fitting as well, but only the part inside the frame. The outer flange doesn't move.

I'm assuming the fitting as well, but only the part inside the frame. The outer flange doesn't move.
Is the frame steel, Al or what? Steel frames usually have the water bottle bosses brazed in place and they never come loose but you could either strip the bolt or the internal threads. Al, Carbon and Ti frames usually have Rivnut-type threaded inserts that can be replaced but will often turn with the bolt if they aren't crimped in adequately.

If your fitting is stationary then either the bolt or fitting's threads are damaged. Try pulling firmly outward on the bolt while you turn it to see if you can get it to back out.

Either way, you should be able to fix with a new bolt plus running a tap down into the boss....I believe it takes a M5 x .8 if I remember right.
The standard bolt is indeed M5x.8 mm. If the bolt is damaged, a new one of that size will work. If the fitting is stripped, tapping it to M6x1.0 will be needed.

It's an Al frame. I can turn it all day long but it doesn't move. I can't move it in or out either... but it turns. here's a picture(should put it up to begin with)
http://img10.imageshack.us/img10/2226/s3011130sml.jpg

Unfortunately the bike shop is closed on Mondays so I can't call them, but I have a feeling it's going to be more hassle than it's worth to go that route.