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This is Canon's word on the Err 70 message: - Turn the power switch to <ON> to turn on the power again. - Remove and re-install the battery. - Use a Canon lens. - If the instructions above do not solve the problem, please contact your nearest Canon Service Center.
It appears you have done all this. The camera will need servicing. If it is less than one year old, since date of purchase, you should call 1-800-OK-CANON and put in a claim for failure within warranty, and Canon ought to fix it for you for free.
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The film is being fogged by light leaking into the camera through a bad light seal. Due to the design of APS models the seals cannot be replaced. Either put opaque aluminium tape over the outside part which is leaking or retire the camera and replace it.
Still under warranty? We sent our camera back for repairs after we had similar issues and the Canon support was fabulous. We could take movies but not stills (pictures). Call for a Return Authorization number first. We had our camera back in a week or so.