DCR-TRV460E Digital 8 Blurred LCD & Viewer in Recorder Mode

I own a brand new Sony DCR-TRV460E camcorder since late 2005. I have been regularly using it until 31 October last year. Then I did not use it again until 22 DEcember 2006 when I wanted to cover a family function but was met with a great shocking surprise! I had removed the battery (NP-QM91D) before storing it away and so fitted it on again before I could start recording. To my surprise when I switched on the camera to start setting up for the session, I found that the image in both the View-finder and the LCD was blurred with dirty brownish red and green colors! At first I thought maybe it's the battery and changed to the back-up battery. It was the same! After several attempts of trying to diagnose the problem, I finally gave up and abandoned the recording. I took the camera to a Sony agent but was demanding so much money for just diagnosing the problem that I could not afford. When I went home I tried to play the last recording I made with it and it was playing normally! What could then have gone wrong? Please help I am desperately in need of your solutions.