Older versions of the droid had the same problem, but it was supposedly fixed. Go to settings, about phone and look for 2.0.1 under firmware. You might've also been given an old phone.Take it back to the store if you still can.
This is how the camera should work.. any screen, hold the camera button and your camera will turn on. From camera icon on auto. Half push focuses, two beeps, push full snap crack pop, you've got a photo. If that's not working, then you should take it to a store bc no settings would allow no pictures. The camera is fine, just the firmware...or the software does not allow it to function to its full potential. That being said, it doesn't surprise me if it doesn't take.
good luck brother