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Same thing happened to my Droid 1. Recommendations from many forums were to wipe the device back to factory defaults and see if that fixes it. The theory was that some other application might be affecting the cameras operations. I never bothered wiping it and lived without the camera for a few months until my contract expired and I was eligible to upgrade phones at a discounted price. I had my original Droid rooted, so it would have been a lot of work to get the phone back into a state I liked if I had to wipe it.