So, I've had my 8GB iPhone 3G for about 7 weeks now. While I never made much use of the camera on my previous mobile phones, I find myself using the camera on my iPhone all the time. I love being able to take a photo and immediately e-mail it to someone, or post it on Facebook, or post it on Twitter, or upload it to MobileMe. While I have a digital camera, I don't carry it with me all the time, and even if I did, I have to bring it home, plug it into my computer, etc., to be able to send the photo(s) as described above. A couple weeks ago, the camera started sporadically acting up. I would open the camera app and everything would be green and static-y. Sometimes restarting the app or doing a hard reset on the phone would fix the problem. Now, however, it happens pretty much every single time I try to take a picture. I can still take pictures, they just come out all green. An example of what this looks like (I took this with my phone - it's supposed to be my DVD tower): http://twitpic.com/1e9oy I did some research online, and it sounds like I have a bad camera sensor. Squeezing the phone just beneath the camera sensor temporarily clears the green/static, as described by others who have had this issue. The only solution to this problem, apparently, is to completely replace the phone. So I made a Genius Bar appointment at the nearest Apple Store (which is 2.5 hours from where I live), expecting to have my phone replaced. When I got there, the FIRST thing the "Genius" did, before even really querying me about the problem, was to look inside the headphone jack. Apparently my liquid indicator has been tripped, as the white dot in the bottom of the jack has turned pink. So he was basically like, "Your warranty has been voided; you can buy a new iPhone if you want for full price." When I assured him that I hadn't dropped my phone in the sink or the pool or otherwise doused it with liquid, he almost reacted as if I was lying. He also responded by saying, "Well, it's only the camera"... I consider the camera to be a pretty major component of the phone. Also, I would think that if my iPhone truly had interior liquid damage, I would be having other problems with it - but everything works perfectly except for the camera. Apparently the liquid indicator in the iPhone is very sensitive. I live in Florida, and it's humid, it rains a lot, and gets hot. If a couple drops of rain or sweat gets inside my headphone jack, apparently I'm totally screwed. As someone who has poured thousands of dollars into this company, this is the first Apple product that's given me a major problem; it's not even two months old and I'm being told that nothing can be done. I'm not sure whether I'm going to just shell out $399 for a new one or wait until June/July when the next gen version gets released. But I have reservations about continuing with the iPhone at all if it's this easy to trip the liquid indicator and void the warranty. I'm not necessarily expecting someone to provide me with a solution to any of this, but I was wondering if anyone has had ANY luck with getting a replacement or out-of-warranty repair with (apparent) liquid damage. Also, I know that there are a couple third-party repair places who will repair iPhones for around the cost of an out-of-warranty repair (which Apple will not do if the liquid indicator has been tripped). Is that a good/bad idea? And if anyone finds this whole liquid indicator business as absurd as I do, please feel free to share your story.