Horizontal lines appear on photos taken by my sanyo xacti vpc s60ex camera

Hello.
The chip/one of the ribbon inside the camera has a possible scratch in it.
Firstly, try to connect it to your PC and look if there's any update available online.
get it update, if there is.
If none is available, flash the camera to a dark and light places and check if you can still see the horizontal lines.

If you can see the lines, it means it needs to be repaired.