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I have the same case and had the same problem, but it had nothing to do with the case itself.

I tried to leave on the protective film on the back that the phone came with until I received the skin I ordered, but it was ruining my pictures and looked exactly like what you have there. So I cut the corner of the film with an X-acto knife and it fixed the problem.

Sure you didn't just forget the film was still on there?
 
Yes, I took off the plastic as soon as I got the phone. There was no missing them with the tabs at the bottom to help peel them off.

I think there might be something wrong with my iPhone's camera :eek:
 
I just wanted to post that I too purchased this case. Honestly I love it, feels great on and feels like it gives a good amount of protection without making the phone much bulkier.

However it does effect the flash, not as bad as some of the other cases I have seen. But it does give a slight white.

I noticed even without the case if your finger is sitting to close to the flash or camera it does the same thing with the whitish picture.

Curious how they will make a case to not have this issue.
 
I bought the same case on clearance today. Mine is a light blue inner liner with light grey outer casing. Mine has a little added bonus: the back has a flap that opens into a stand and easily carries 3 cards, ID, credit card, costco card (all I need). Awesome. There's only one problem and its a major one for me; the LED flash causes a blue glow all over my pics. Real bad. I will find a fix because I love this case. Maybe gonna have to white out the edge around the camera and flash or even black it out. I'm going to talk to someone who has some knowledge on the way a flash reflects. When I figure out what color will work best for the reflection, I'll repost my findings and how it worked out. The case is worth the fix. It's a great case in every other way. Oh and my iPhone 4S is covered w a full body ZAGG. They work fine together. The only things I would add to the case is an apple logo on the back. The only addition needed in my opinion, would be to liquipel my phone.
 
Here are some pictures with captions explaining the situation...

After taking several other pictures, I have concluded that the LED Flash just isn't any good at all, either way. I looked at it more with the LED on, but covered up, and it looks like a lot of light leaks into the pocket where the camera lens is at, that's not good :eek:

Dry skin eh? Lol
 
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