Hi Phillip, this is exactly what's happening to my wifes Gio. Everything about the phone works fine except for the camera. Whenever she decides to use it, it is never reliable, it always gives her that same error message. We have tried downloading other camera apps thinking it might be just the samsung included app that's not initializing the camera. So far the only way we found a fix for this issue is shutting down the phone completely and turning it back on again, then the camera works again. So it does work, but unreliable all the time and very hard to "capture a moment" without having to restart phone.
Can anyone provide any insight or even better a fix to this issue? How about a firmware update, will this fix the issue?