I started having the "can't connect to the camera" message.
It has been debated widely over the different forums, and was always associated to ROM, software, permissions issues and such.
First, I'd like to say that this phone is fantastic value for money.
The other day, after trying numerous roms, and permission fixes, and with no luck,
I was playing with the charger cable (while connected), while the camera app was working.
I noticed that fidgeting around with the cable had influence on the app, freezing it at times, making the camera input flicker etc.
I knew right then, this was a connector issue, hardware, rather then something else.
I immediately decided to abandon the "warranty" procedure and take it apart to find the problem.
There is a little rectangular sponge which was right above the connector, but apparently was not pressing it enough,
so I attached 3-4 little squares of thin cardboard (really thin), in the same size of the sponge.
Re-assembled the phone, and voila!, works like a charm ever since!
I will post some photos later, if someone wishes, but the phone has been working for some time now, with no problems what so ever.
So that's it,
the mysterious "can't connect" issue, SOLVED,
at least for me, and to another phone I had ordered which had the same problem (also THL w100).