This is a result of too much light. The imaging sensor is reacting to an overwhelming amount of light. This can cause permanent damage to the imaging sensor.
Solution: Close the iris down immediately.
Note: Setting the iris for outdoor imaging is a one-time process. Place $e in the image overlay and monitor the exposure. During daylight, the exposure should fall between 100 and 500. If it's under 100, close the iris a little. If it's over 500, open the iris a little.
Exceptions: The iris and damage warnings do not apply to the following cameras: NetCam XL 3MP, NetCam SC Series. These cameras use a more advanced sensor that all but eliminates the problems with overexposure and sensor damage.