Fujifilm E900 Taking pictures with Horizontal Lines

My Fujifilm E900 has worked flawlessly up until a few weeks ago. Every now and then it started taking pictures with fine horizontal lines going through the picture. Now it takes pictures like this all the time. Here are two examples,

http://www.nattyo.net/pics/lines1.jpg
http://www.nattyo.net/pics/lines2.jpg

I tried swapping out the xD card and I get the same results. I've searched other help sites and it seems that this is definitely a hardware issue. My camera just went out of it's 1-year warranty. I can send it back for a repair estimate, but would rather not.

that appears to be some sort of banding issue. If it just went out of warranty I would give Fuji a call and explain. I don't know about them, but Cannon has been rather flexable with some of my friends in the past.