i have spoke to a apple senior adviser who told me they will contact the apple engineers and pretty much figure out what's going on. She sent me her schedule and days shes on and off so i can reach her with any information. I will post any more updates from here on out.
"Fixes an issue that occasionally caused blank or frozen video during a FaceTime call"
This is a pretty oblique way of saying "Our phone has been taking pictures of you without your knowledge or consent, then accidentally displaying them. We think it's fixed now." Still, I wonder what they've fixed: taking pictures, or displaying pictures?
I have/had the same issue. I just updated to 4.3.2 and will make my next FaceTime call on Monday.
I seriously doubt this is/was some sinister plot by Apple to obtain photos without a users knowledge. It was probably some buffer issue associated with the camera hardware and FaceTime just displayed whatever it was "given" when it activated the camera. Conspiracy theories aside, I just found the situation to be annoying. I was always forced to stop all my background programs and reboot my iPhone. Not a very good situation when you only have a 10 minute window to place a FaceTime call and 2 are spent waiting for your iPhone to sort itself out.