Its the ccd thats faulty....its a known fault, sony spplied 1000's of these to various manufacturers. JVC are now offering a free repair until June of this year.
Go to their website ( jvc.com or uk) and look under customer notices or alike.
Phone them, and they will arrange to pick up you camcorder, repair it and return it for free.
Hope this helps.
Michael
Michael, April 2008