Odd this has been here five months w/o a response. Apparently you describe a "burned out CCD", the famous "sensor problem", which is frequently mentioned whenever the Digilux 2 is being discussed. It's too bad because I think otherwise it is a wonderful camera. Contact Leica in whatever country you live and see what the current policy is re: repair, and whether the company will stand behind their product. There appears to have been positive response. Good luck.