A while ago my w580i camera stopped working and displayed the message that another application was running. I tried fixing this by flashing the phone, and even replacing the camera driver with several different modded drivers with no success. Finally I decided maybe..just maybe it's actually a hardware issue.
Fix -
I replaced keyboard flex cable part (ebay $15) and camera now works fine without error message. I was fairly happy.
I read somewhere afterward that dust may contribute to this camera error (dust getting through memory card slot and disturbing lens). Maybe a little compressed air (can of air) through the memory card slot toward camera lens would solve this without having to buy a replacement part.
However - for sure, a "keyboard flex cable" replacement will solve this issue. Good luck googlers.
mal
