Same problem. Fully charged main battery. In my case, I hadn't used the camera in over 6 months. All I did was pull the main battery and then pulled the small CR 2016 button cell battery located inside the main battery compartment and re-inserted both batteries. The camera made a quiet click and then turned on with the main power switch and asked to reset the date and time. Works fine now. If this doesn't work just purchase a new button cell.
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3) Canon had a run of bad motors for this model - if mirror does not go up, then it is the mirror motor. If mirror goes up, shutter will not fire, press release again then the mirror goes down, the shutter motor is bad (same model motor). If mirror goes up, shutter fires, both blades travel together/no exposure, probably the shutter is bad.
The ISO is set to Auto and can't be changed when shooting in Basic Modes (all of the icons and the green circle). ISO can only be adjusted in Creative Modes (P, Av, Tv, A-DEP, M). If you want to adjust the ISO in Creative Mode, press the ISO button and then turn the dial next to the shutter trigger.
I would hesitate to disagree with Canon service, but you may want to try replacing the date/time battery. It's a small "button" battery (CR2016) that is supposed to provide power so that the camera 'remembers' the date, time, and other settings when the main battery is removed.
It is located in a holder that slides out of the camera, right next to where the main battery is located. It's worth a try.