Ok, got it working again. This is what I did this time.
The objective is to restore the phone's firmware, so it is important that you back up all your data before doing the iphone restore. Once firmware have been restored, you can then put back all your files by doing the normal "restore from backup" procedure.
This is what I did:
1. Restarted the phone on DFU Mode. Plug in your iphone to your laptop and fire up itunes. Simultatneously, press the reset/power button and the home button. This will restart your phone. Once it turned off, release the reset/power button but keep on pressing the home button. On itunes, it should detect your iphone needing to be restored. Release the home button and do the normal ios/firmware restore procedures.
2. Once restored, restore your data by doing the "restore from backup". it should have your camera already working once completed.
Again, this worked for me, and it may or may not work for you. I am still observing my phone as I just recently had it restored after twice of having a corrupted camera!
Good luck!