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Sounds like the CCD has developed a fault. I had a F717 which had similar faults but this turned out to be a batch of faulty CCD's which I know the F707 shared. This maybe why Sony are not keen to get involved as it will cost them money. JVC had a similar problem with some of it's Camcorders using a similar CCD and they replaced them FOC even those well out of warranty. Keep trying with Sony and mention the CCD and serial number of the F707 and see if it is one of the faulty batch.