Camera stop working after 16 months

I've had the camera for 1 year and 4 months. It takes great day time pictures. However, the camera is absolutely useless for night time pictures. The colors come out awful when the flash is on and it casts annoying shadow on the subject.
Today when I turn it on, the display immediately turns into red green and blue and remains that way. I can not take any pictures nor turn the screen off. I tried removing and re-inserting the batteries but the same problem re-appears. Does anyone know why?

The warranty is good for only 1 year, sigh! If I call the support line, they will charge $35 up front. This is NOT nice. They should at least provide some service opinion without asking for money up front. Do NOT ever buy HP products!