I know how important it is to have a working camera!
I checked and didn't find any reports of camera problems with the KIN TWOm. However, I would like to further assist you.
Seeing that you have already completed the necessary troubleshooting I would have suggested, you can try one last step. I would perform a Hard Reset of the KIN. This could clear up any possible corruption on the phone internal memory that could be preventing the camera application from opening properly. The reset will erase all user data and contacts, so ensure you have a copy of this data prior to the reset. I am including a link with instructions and screen shots for the Reset below:
Let me know how this works out for you!
I performed the reset and the camera was still doing the same thing. I had to spend some time re-inserting all my information and files. I called Verizon and received a replacement.
Earlier the same day the replacement came, the original phone's camera started working out of no where. Hours later I received the replacement. I sent the old one back anyways and the new phone works well so far. I wound up having to re-input all my contacts, files, etc twice though due to this issue
I noticed that the serial number on my original Kin two was older, and was originally a Kin two not a Kin twom. The M was added on by permanent marker and the software was just re-loaded. The replacement phone is a newer serial number and an official kin twom as apart of the device not added on. This may be why the original was not working well / buggy.
The new device has not had any problems yet to date.