Sorry to say that this sounds like failure of the camera's CCD imager. This is not something that you can repair yourself. Canon will repair this for you free of charge if still under warranty. Even if no longer under warranty, still recommend contacting Canon, as this should not happen in a newer model camera (be nice, and maybe they'll be nice about it too :-).
If in US or Canada, Call 1-800-OK-CANON. Anywhere else, contact Canon support through www.Canon.com
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