iPhone OS2.2 has serious bug in image handling.
All images with size of 600 by 800 (not only my app) can not be displayed properly in the photo album.
Also you can not attach this size of image to the email.
However image is successfully saved into your folder. You can view the fine picture with PC, by using iTunes sync or importing with other app.
I will change the image size to 600 by 801 to avoid this problem as quick fix.
As soon as apple fix this bug, all images will be fine. Please ask apple to fix it.
Now I released new version of ToyCamera, and OldCamera that saves image as 600*801 to avoid this problem.