You have to SEPTEMBER 30th, 2008 to do this!!!!!!
This is a known issue with the cameras. go to:
Enter your camera model. Go to:
Important Notice About Your Sony Product
and follow the instructions. Sony will email you a UPS shipping label. Ship the camera back to them at their expense. They will fix it and ship it back to you for free.
Until September 30, 2008, Sony will repair, free of charge, affected products exhibiting the above-mentioned symptom where it is caused by the image sensor device. Sony will also cover the cost of shipping and handling from and to addresses within the United States and US Territories for service to correct this issue.