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I had the same problem, called Casio, and -- like the first solution -- they'll send a battery. So, folks, it's a manufacturer-originated problem and kudos to Casio for owning up to it (they admitted it on the phone) and for sending the solution, a replacement battery.
I think we have the same problem with the Exlim s600 model, if the camera take picture outdoor, the picture is almost white, with horizontal line. I have taken it to the repair center at Compex, Quezon Ave., They say the problem is in the camera CCD lense. which cost P7,500 to fix. A new one Casio 8.1 meg pixel, cost just about P8 to 9T. I bought mine March 2006, Use it for only about 35 times. got a feeling these camera were made to be broken just about after the warranty expire.