got one of these through work as part of a package. great little camcorder. used occasionally for 18 months then gave same problem. after looking on the net, it turns out that a ccd that canon use in some cameras and camcorders are faulty. canon will arrange a free repair, assuming you have all receipts etc. i also think you pay the postage. below is a link to a camera site where you can find out more and a direct link to canon. hope this helps........
http://www.dpreview.com/news/0510/05100602canon_ccdproblem.asp
fed up mick, August 2008