S500 problem

My S500 has been working fine until now- it still takes pictures OK but changing the function dial (manual, panorama, movie) has no effect. Whatever the setting is, it only takes pictures on auto.
Does this sound like a software or hardware issue? Also, is there anything I can do about it myself? The warranty has run out and Canon want $119 "labor" just to look at it!
Thanks!

i fixed mine when it did the same...the contacts on the mode dial are not making contact...

remove several screws to take the back of the camera off

look inside the back cover at the back of the mode dial. notice how when you press the raised lip edge of the metal contact, the three contacts move up? just press it enough get them to stay raised up a little

put the cover back on.

hurricanesteve, your post here just saved me $127. I had my S400 with the same symptoms packed and ready to send to Canon tomorrow for repairs. I read your solution to the problem and tried it. My camera is now repaired and I just wanted to thank you for sharing your solution here ... I can't believe it was so easy!