Firstly , let me state that because I cannot see the camera or open it , my advice is extremely limited to my past experiences.
I suspect that the CCD/CMOS (the chip that physically captures light and creates the digital image) has broken.
If this is the case , a repair would cost approximately $100. This is the most common problem for a camera that takes distorted/black images but where the menu display functions and old photo's display normally.
Check to see if the video function works normally.If this does not work, it supports the idea that the chip has gone. Also see if photo's uploaded and again downloaded to and from the card looks normal. If these photo's are normal , its almost for sure you ccd.
I would take it in to a repair center for an evaluation , but would not have it repaired if the CCD has to be replaced as a new or refurbished camera would cost only slightly more.
Please feel free to contact me if you need further information
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