So after all that nonsense i did some more searching and found this on the sprint website; IT ACTUALLY FIXED MY ISSUE:
Camcorder not working after 2.2 update and AFTER the factory reset didn't fix. Try this before your factory reset and after if it didn't work.
I recently updated my EVO and when I did I tried to use my camcorder at a baseball game. My phone pretty much locked up in camcorder mode. It would go black and I would have to lock the phone and unlock it, hit the home key to get out. But after that the phone was laggy, took it forever to go between cards on the home screen. Talked to sprint and they only had 1 fix which was do a factory reset on the phone. That failed and I still had the same issue. Phone would lock up when trying to record a video. Had to pull battery out and reset phone. I contacted HTC and they had no answer for it on how to fix it.
However, I have the fix for it. (Try this before your factory reset - Sprint said factory reset worked for some people but not all)
1) Restart your phone
2) Delete all your videos on your SD Card (This sucks, I am sorry but you can copy them to your PC)
3) Hit the home key (if your not on the home screen already)
4) Hit the ^ key on your phone to pull all your apps
5) Scroll down to your voice recorder and access that app
6) Hit the record button and record something it can be anything
7) After recording stop and delete the voice recording
8) Go to your camcorder
9) Record your video and it will work
It works. It sounds stupid but thats what you have to do.
Thank you j.balde88; wherever you are....