Canon Pwershot SD1100 problem

Hello
it shows that some internal damage has been occurred, need repair, recommended for repair from authorized service center.
Good Luck

you can get all the information from this link below hope that you can get all the information required

http://www.steves-digicams.com/camera-reviews/canon/powershot-sd1100-is/canon-powershot-sd1100-is-review-4.html

This new battery, if it is the exact type of battery recommended by the manufacturer then it is most likely not the battery. if you bought a similar battery it might be for even the minimum difference makes all the difference with digital cameras. for camera repair this company does a good job and you can even select your problem on their online quote. www.teleplancamerarepair.com

Think that you might have accidentally pressed the DISP or DISPLAY button on the back of your camera. This manually turns the LCD display on and off to save batteries. You would then use the optical viewfinder in its place. To turn the screen back on, just press the DISP button one more time.

Easiest way to erase all images...go into the menu and scroll to "format"...follow the on-screen instructions.

I think you mean Dec. 2008, not Dec. 2009.
Your camera may still be under warranty. Check a few things first. Go to your menus, if you can, and reset all to default settings.
If you cannot, then you need to get the camera to Canon Repair.
Here is a link which will help. Call the 800 number for the repair department. They have a trade-in or trade-up program to get a refurbished unit, if that may be another choice for you.
http://www.usa.canon.com/consumer Help
I don't think this a problem you can fix. Some problem in you lens, cables, or the electronics. It needs repair.

Apparently, you missed some sand and it just took a while to work its evil way into the works of your camera.

Could be that ISO settings were accidentally changed. The main annoyances with high ISO setting are the noisy (grainy as you say) images. Check the iso settings if you are shooting in modes other than automatic shooting.

Press DISP. button, and repeat untill the display shows up

You can reset the camera to factory settings. If after that, you still have the same problem, make valid the Canon warranty since it's 4 months old.

Regards,