I've noticed that the camera "image flipping" on my n800 isn't functioning properly.
When I first extend the camera it is facing me and the image is correctly oriented. But as I rotate the camera away from me, it flips the image and then unflips it - so it's upside down.

Like from 0-90 degrees the image is correct
From 90-100 degrees the image is flipped so it's corrected
From 100-180 degrees the image isn't flipped so it's upside down

What's causing this, a software problem or a hardware problem? I looked on the message board and I see no mention of this, so if it is a hardware problem, I still have time to return it to CompUSA.

Is anyone else having this problem/know of a solution?

You need to return that one for a replacement.

At least, you're not alone, I've got the exact same problem.
My device is manufactured in Finland.
It's a pity to return it now... probably gonna play a bit more with it before sending it back

I just came back from CompUSA
I told them I'd like to exchange it because the camera is defective, and they were fine with it.
But before leaving Customer Service I went ahead and tried it out, and that n800 had the same problem.
So they called some people over and we talked about it - they were thinking there was some setting or something. In the end, I just asked for a refund which they were happy to do. The manager offered to try another n800, but I didn't want to open up another box just to see that it had the same problem.

It's a shame too, I really liked the n800. I guess I'll wait a few months and try again

I've seen two N800s in the UK, one worked perfectly the other as you described.

The N800 with the faulty camera didn't feel smooth as I rotated the camera past 90 degrees - the camera felt like it was snagging on something as I continued to rotate it towards 180 degrees. At about 150-160 degrees the image flipped the wrong way up (image upside down) but (sometimes) at 180 degrees it would invert the image again so that it displayed correctly.

Anyway, it looks like a definite manufacturing/quality control issue.

Try going to a different store and check their N800s before purchase - it's probably affecting entire batches if your CompUSA experience is anything to go by.

Made in Korea on mine. Working just fine.

The webcam problem will not be very pervasive, or affect entire batches. Just try different devices until one flips exactly as it should. The cause has been caught and corrected.

I have the same problem (Made in Korea) and there is a slight pull on as you rotate the camera past 90 degrees. Is there a simple fix?

The fix is to return the device for a replacement.

Unfortunately I am in Canada and purchased it at Compusa. I can`t return to the USA just for a replacement.