My iPhone camera suddenly started taking blurry photos. Any ideas?

I have an IPhone 3GS. I know the camera quality on the 3GS isn't really known for being the greatest to begin with, but it's always been good enough for me. I've had my iPhone since June, and just recently, in the last month, the camera suddenly became noticeably worse. It's not the typical grainy quality of an IPhone camera in bad lighting; no, the photo quality looks like the double vision of a drunk person, or the blurry vision if someone who's lost their contacts. No matter what I do, I can't get it to go away. I've tried cleaning the lens, and I've tried numerous different lightings, but nothing helps.

Also, I have no idea if this is normal, but there's a clicking noise coming from my phone every time I turn the camera on or take a picture with it. It's not the shutter sound that comes from the speakers… You can actually hear it coming from inside the phone. That part may or may not be abnormal; I just know I'm not the most observant person all the time and I just recently started noticing the sound.

Any ideas on what could be going on, or what I could do to fix it? I apologize for the long ramble, but I just wanted to make sure there's no confusion about what my problem really is. Anyway, any ideas would be greatly appreciated.

I would suggest doing a restore. If that does not work, try to find a local repair facility. It could be that the lense is scratched and you just can't see it, or it could be that the camera sensor itself has gone bad. Always start with a restore.