What you are experiencing are symptoms of a failing CCD (imaging sensor). Most often, the sensor needs to be replaced. If you need to have it serviced, a great place for these G12 models is: www.camerasandparts.com They just service the Canon Powershots exclusively and the work through them is superb. They are not expensive at all, it runs $89 through them to fix this problem. That looks after parts, labor, servicing for the camera, and the return shipping included. This is where a lot of people go for help with the Canons. Hope that helps you with it, best of luck.
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