I am having the same issue with this system;
http://www.supercircuits.com/security-camera-systems/alibi-4-camera-ip-system-sys8430ip
Except I have 4 3mp dome cameras same specs tho.
The blurry pic below is of the suspected defective camera. The next night I relocated one the the cameras from a location that was recording clear images. So this eliminates port, wiring, lighting etc. I have one more camera I am doing tonight before i send them back for replacement. Any ideas? by the way I am NEW to this forum thing and CCTV thanx for any help!!