This sounds like it might be a defective CCD imager. If so, Canon should fix this for you for free worldwide, and may also include free shipping both ways (free shipping varies with countries). This is regardless of your camera's warranty status. Please check this link for more info.
Applicable cameras include:
A40, A60, A70, A75, A80, A85, A95, A300, A310, S1 IS, S60, S200, S230, S330, S400, S410, S500, SD100, SD110, IXUS V2/V3/300/400/430/500/II/IIs, IXY Digital 200a/300a/320/400/450/500/30/30a
Review: Turns the instant image review function on or off, with
available image display times from two to 10 seconds in one second
steps.
Record Menu: Pressing the Canon Menu button in Record mode pulls
up the following options (not all options are available in all modes):
AiAF: Turns the AiAF system on or off. If on, the camera judges focus
based on the subject's proximity to nine focus areas arrayed in the
center of the image. If off, the camera bases focus on the very center
of the frame.
Red-Eye Reduction: Turns the Red-Eye Reduction pre-flash on or off, which works with all flash modes.
MF-Point Zoom: Turns the MF Point zoom option on or off. If on, the
center of the frame is enlarged on the LCD display for better viewing
while adjusting the manual focus.
AF Assist Beam: Turns the AF Assist light on or off. If on, the light automatically illuminates in dark shooting conditions.
Digital Zoom: Turns the 4.0x variable digital zoom on or off.
Review: Turns the instant image review function on or off, with
available image display times from two to 10 seconds in one second
steps.
Grid Lines: Turns a display of grid lines to align subjects in Record mode on or off.
Date Stamp: Only available in Postcard mode (set via the Function menu), allows printing of Date or Date and Time on photo.
http://www.imaging-resource.com/PRODS/A5… ...
Digital cameras require lots of power. Bad electrical contacts can
cause lots of problems so battery and camera contacts must be cleaned
properly. Batteries may be fully charged, but will be viewed as low if
contacts are not really good. The LCD screen is a low steady load, but
when lens extension, optical zoom, focus, and flash charging are added
in the capture mode; the load is very heavy. Bad contacts make cameras
do strange things like making bad pictures or shutting off with the
lens out.
CAUTION Do not overcharge! Batteries can be damaged. Use an automatic
two or more hour Energizer Compact smart charger with temperature
monitor, trickle charge technology, and safety timer ($9.76) at
Walmart. Use pre-charged 2000mAh Duracell ($12.97) or RayOVac ($5.97)
batteries (hold charge one year) and a full cycle charge. To preserve
battery charge, use the viewfinder.
Never touch battery ends or camera electrical contacts. Oil from
fingers will contaminate contacts. Use batteries in matched pairs of
same brand and rating. Do not mix old and new batteries. New will only
do as well as old.
NiMH batteries should be recharged when camera reports batteries low.
Old batteries can discharge over night, but may provide normal service
immediately after being charged. Battery pairs no longer usable in
cameras may work well in flashlights. Do not drop batteries on a hard
surface or allow voltage below one volt to prevent polarity reversal.
Digital cameras reset to original settings if batteries are removed for
one minute. Time varies with function/camera. Check display/setup menu
for non-auto functions and date/time. Remove extra memory to eliminate
this as a possible problem. Insert fully charged/cleaned batteries and
restart camera. The ultimate non-physical repair for software-using
devices is reset by removing power ... VCR/DVD players one month.
Click this link for other camera tips and complete instructions on cleaning camera and battery electrical contacts.
Try removing the memory card and seeing if that makes any difference. Some memory cards can cause a conflict.
Also make sure the batteries are over 1/4 full.
If it still doesn't work, then you may either want to disassemble the camera or send it in to canon and they will fix it for $50
The ribbon cable from screen to main circuit board may be loose, broken or pinched.
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