Camera keeps on freezing on Iphone4

Is anyone having problems with their camera on the iphone? Mine keeps on freezing almost every couple of pictures/videos I take. I thought it was just the iphone4, but my friends 3GS started doing it too after updating to the new iOS. It's driving me up a wall!! The only way to fix it is to restart the iphone. It just stays in the closed shutter mode the whole time, and wont let me take a picture. I can tell when it is about to start freezing when the picture starts getting distorted by weird lines.

For all future people who come into this same problem, Apple is aware of this issue and will give you a replacement iphone. Problem fixed.