I had my iPad 2 for about a week and a half before the camera stopped working. The shutter picture would appear and all camera functions would be frozen. The camera/video slider icons on the bottom right would flicker. The Facetime camera worked fine. Rebooting did not work. Restoring to factory settings did not work. Taking it to the Apple Genius Bar and having them install the latest firmware and restoring again did not work. They finally gave me a new iPad 2 and claimed they had not had that problem before. They guessed that the camera facing away from the screen may have come loose or was not properly installed.
Not much out there on this subject so hopefully this is an isolated and rare experience.
Not much out there on this subject so hopefully this is an isolated and rare experience.