It's a defect in CCD chip (or something like that). Anyway, it's a flaw in a lot of JVC cameras, including this model. JVC will fix the problem for free, but only if you can prove that you are the original owner, i.e., with a receipt showing that you purchased it. There is a link on the JVC website detailing how to ship the camera to them, etc. I haven't done it yet, as I just found my receipt when I started doing my taxes over the weekend. But, I will do it in the near future. My information says that the repair of the camera costs about 2/3 of the new purchase price, so if you can't prove you are the original owner, you might as well buy another camera. Good Luck. Jason