I'm getting distortion when I copy across the sdk camera preview code into a new app. It runs fine on the emulator, and to a degree, my HTC hero, but it has 5 horizontal areas, each of which are the same. It all likes like an incorrectly interlaced.
I've taken a video of it in the hopes somebody has seen it before. All other applications, ie the proper camera and the barcode scanner work fine. The demo app in the sdk which contains the code runs fine, including the camera preview.
Video link: http://www.youtube.com/watch?v=YkIxqEImqlg