This sounds like it might be a defective CCD imager. If so, Sony might fix this for you for free (depending on your model number), including free shipping both ways. This is regardless of your camera's warranty status. Please check the following link for more info:
http://camerarepair.blogspot.com/2007/11/sony-konica-minolta-cameras.html
Applicable cameras include:
Cyber-shot DSC-F717, F88, P10, M1, P12, P2, P31, P32, P51, P52, P7, P71, P72, P8, P92, T1, T11, T3, T33, U10, U20, U30, U40, U50, U60, V1
CD Mavica MVC-CD250, CD400, CD500, and FD Mavica MVC-FD100, FD200
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