When ever I try and use the video on my ipad 2 I get this high contrast camera glitch. Basically areas where there is lots of light, it gets replaced by blackness...

Software or hardware issue??

Anyone else had this problem?

Try a restart, and if that does not work a reset. This has cleared up camera issues before.

Restart: Hold down the power button until the power off slider appears. Slide it off. When the iPad finishes shutting down, hold down the power button again until the Apple logo appears.

Reset: Hold down the power and home buttons until the Apple logo appears. The iPad will reboot. This usually takes a bit longer than a restart.

Hey thanks...

It seams to have worked !! ...Lets hope it doesn't happen again!!

No problem. Just like any other computer the iPad needs to be restarted now and then. Apple recommends once a week.