I had this problem with my Canon zr60. As mentioned previously, it was a problem with the CCD Assy (whatever that means). I called the Canon toll free number and they knew exactly what I was talking about. They logged my information on their computer and instructed me to mail the camera to their factory service center in NJ. It was fixed free of charge and shipped back to me within two weeks of receipt. I couldn't be happier with the customer service. I had expected an hour long phone battle and got a pleasant five minute conversation. I expected hidden costs and shipping charges but paid $12 including insurance to ship it to NJ.
My advice to you is to call the 800 number on the back of your owner's manual.
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