There may be the issue with the CCD (image sensor device) of the Camera. This is a known issue with this Camera.
Refer this article to confirm this.
http://esupport.sony.com/US/perl/news-item.pl?mdl=DSCT1&news_id=161
Check whether the LCD screen of the Camera looks similar as given on the page.
If yes,click on the "Yes" button at the end of the page to create an
online Repair Request for sending the Camera to the Sony Factory
Service Center.
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