Is my Kodak camera dead?

I have a Kodak DC280 with about 6800 photos shot. The problem I am having now is that I can not get high-res images any more. Images are all coming out grainy lo-res. It is only a 2.0 MP camera :) but is fine for my needs. I have tried new batteries, firmware update, new flash disks, rechecked all the settings. Is it dead?
--Bill

Only one thing I can think of is to try a total system reset, if possible. If not, contact Kodak and see what they say, and finally...file it in the circular file and get a new one. But, 6800 shots is not much. I have over 50000 on my Kodak DX 4330 and it is still going strong. Even with a cracked viewscreen and having been dropped numerous times, some from as high as 8 feet. So I would think there is a setting that is set wrong. But...I don't really have any idea.
Ken

Ken-- Thanks for the input. I did update the firmware. Not sure how to reset the system. Nothing on the camera like I have on my PalmPilot, a reset hole, that I can see.--Bill

It's usually a menu option, but older P&S types may not have that option.