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This has happened due to failure of lcd controller or due to a flex cable misalignment. When your camera was dropped, the cable connecting the lcd with the main board might came off and needs to be reconnected back. However, if you want to be sure its the flex cable and not any lense issue, you'll need to connect your camera with the computer and check whether all pictures you clicked after the camera gone bad are fine?
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i just got a new camera the dimagne x50 and i brang it out today and it was working fine it didnt drop or anything i took a picture then turned it off then i turned it on agian and when it was on the camera format the light kept on blinking yellow for the longest time and wouldnt let me take a picture so i tried the video format and it worked so im just wondering why the video format is working and not the camera ? has this happened to you? is there any way of fixing it?
No easy fix. Pressure or impact is the usual cause of a cracked LCD. Try not to get the black stuff on anything....it's pretty toxic! The screen needs to be replaced (assuming there's no other, internal damage). They are usually in the range of $75 US.
if the resulting images are the same, you have damaged the camera settings/controllers. see how they look on your computer. if only the display on the camera is damaged, you should consider asking for a flat rate repair. most makers offer a price for major and minor repairs, and never charge beyond that. good luck mark