Sounds like the CCD fault; very common. Canon will fix it for free, if contacted before October 7th. Phone Canon helpline in the U.K. on 08705 143723. This is from Canon's website:
Why is the image output abnormal?
Case Id: 37383
Applicable models
Digital IXUS II, Digital IXUS IIs, Digital IXUS V3, PowerShot A300, PowerShot A310, PowerShot A60, PowerShot A70, PowerShot A75, MV590, MV600, MV600i, MV630i, MV650i, MV690, MV700, MV700i, MV730i, MV750i, MV5i, MV5iMC, MV5, MV6iMC, Digital IXUS V2, Digital IXUS 430, Digital IXUS 400, Digital IXUS 330, Digital IXUS 500, PowerShot A40, PowerShot A80, PowerShot A85, PowerShot A95, PowerShot S60, PowerShot S1 IS,
Digital IXUS II Digital IXUS IIs Digital IXUS V3
PowerShot A300 PowerShot A310 PowerShot A60
PowerShot A70 PowerShot A75 MV590
MV600 MV600i MV630i
MV650i MV690 MV700
MV700i MV730i MV750i
MV5i MV5iMC MV5
MV6iMC Digital IXUS V2 Digital IXUS 430
Digital IXUS 400 Digital IXUS 330 Digital IXUS 500
PowerShot A40 PowerShot A80 PowerShot A85
PowerShot A95 PowerShot S60 PowerShot S1 IS
Solutions
Thank you for using one of our Canon products.
It has been found, that in rare case, some of the CCDs, used in Canon digital camera and digital video cameras, have a problem that causes abnormal image output.
We apologise for any inconvenience this may have caused. Canon will offer free repairs where an error is caused by this malfunction.
Canon would like to advise our customers of the details of this issue and our policy for handling it.
Problem details:
Among the CCDs used in the affected products, it has been confirmed that in extremely rare cases, under high-temperature/high-humidity environments, some of the internal wiring comes off.
If this defect occurs, the signal is not output from the CCD correctly when in shooting mode. This results in image abnormalities such as:
* Images do not appear
* Image colors are abnormal
* Images appear distorted
These symptoms can be confirmed on the LCD monitor.
Solution:
We kindly request users who have confirmed these symptoms to contact the nearest Canon Service Centre.
Free repairs will be made for affected products in cases where it has been confirmed that the internal CCD wiring has come off.
Last modified date: 17-Jan-07
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David Williamson
July 2007