IPhone 4 Shows cyan circle after iOS 5.1 upgrade

Just upgraded my iPhone 4 to iOS 5.1. The camera now shows a distinct cyan-colored circle both while framing shots and in the center of every picture I take - see attached images.
Has anyone else seen this? Is Apple aware? I cannot find a way to write to Apple support about this.
My phone does not have a case.
The lens is clean.
There was no flash - I turned it off before taking the photo.
Both HDR and non-HDR photos show the caste though it is less pronounced in the HDR version of such photos.
Thanks.

When you restore, do you still have ios 5.1, or does it restore to the previous ios?
I tried the update last night and am experiencing the same problems as above and more. My audio files that I had on the iPhone have disappeared, even though they are still present in my iTunes library and when I have the iPhone connnected to my Mac, iTunes tells me that they are on the phone.
Seems only native Apple Apps are opening on the iPhone. No third party apps launch. Just a quick flash or bounce like it tries to open and nothing happens. Funny thing is I still receive notifications from these apps. iMessage, Calendar and Contacts work fine and also the phone abilities to make and receive calls.
I hope this restore thing works for me when I try tonight. Fortunately, I had "cloned" my Mac before I updated iTunes and the iPhone IOS so if need be I still have a copy of all my files I could go back to. Still, what a aggrevating experience!

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