Go to take a picture, take a picture, press Use button. A ultra quick alter box appears (don't have time to see what's on), then you are redirected to the main upload page. I checked on the site, the file wasn't sent.
log when pressing on the capturing image (iOS "camera icon") button:
2011-07-28 13:55:05.963 Moodle[2480:307] *** ERROR: FigCreateCGImageFromJPEG returned -12905. Input (null) was 609917 bytes.
log when pressing on the blue "Use" button:
2011-07-28 13:55:19.830 Moodle[2480:a10b] before decode: (null)
2011-07-28 13:55:19.834 Moodle[2480:a10b] result1: (null)