Yikes. Nah, its not battery related. Usually those cameras require that you push part way down on the shutter release so the camera focuses. As for the grainy prob, you might change the cameras setting to its highest resolution. The setting's buried in your menu & will be listed as fine or best - under image quality. Another reason for grain results from shooting in low light.
Check out this Canon link. May be part of the problem.
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Actually, the problem seems to be a CCD image sensor. In for repairs (Canon covering even though out of warranty).
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