Just wanted to update this. I also ran into the issue of not being able to record videos as well, or them being deleted if it did record.
A few hard resets later and i found a work around. Hard reset and clear cache, and only add your google account. then open the camera and set up the sd card etc. then go into gallery and add a pic and make an album. After that is should work. I am not sure if it the camera not searching the sd card or adding facebook that causes it, but this is what has worked for me on 3 occasions now.