Just noticed I am having this problem today....camera no longer takes photos properly, they all end up looking like rainbow colored static. But the phone still records video fine with no issues.
Got the phone just days after it came out (didn't know that at first. I probably would have got the droid if I had known that it was so new.) Had some issues with it crashing/freezing repeatedly the first week but its been flawless since...
So, I guess I need to go argue for a replacement now?
Sent from my Ally