Put the camera in P modePress the MENU buttonArrow down to Reset to DefaultPress the OK buttonSelect YesPress the OK buttonAllow the reset process to complete
If the reset does not restore normal operation, then, unfortunately what you have described indicates that there is a problem with the ccd (the light sensitive chip that produces the image) or the connection to it, and while your camera was not on any list of cameras for possible free repair, the information at the link below does fully explain the problem
Considering the age and present value of this camera, paying the cost of having it repaired , approximately $125 really depends on how attached to the camera you are, but, is not cost effective. The standard "rule of thumb" is if the repair cost is greater than 50% of the value of the camera, it is not worth it.
Please keep in mind that my diagnosis & solutions provided are directly dependent on the accuracy of your description of the problem. As with any "do it yourself" fixes, success is a "team effort", since I can't see or touch the camera, and relies on the customer's manual dexterity and ability to follow the instructions well.
If you require additional information, please use the Reply to EXPERT to contact me. Click the ratings only after our exchange is complete and you are satisfied.
If you are satisfied that my answer is accurate or has solved your issue, please do not forget to rate my answer OK, Good or Excellent.