Don't think anyone can answer this question from info you provided, most likely corrupt OS or damaged hardware.... Try restarting device, if that doesn't work I suggest you backup and hard reset and see if issue is resolved.
If none of this work then you have bad hardware abd you need to contact CS to see about a replacement device.
@shakaria try to clear the cache on the camera app, that worked for me a few months ago.
You can do this by going into the settings menu > Applications > Manage Applications > Camera
You must then select the clear cache button and it should work.