I think you should get it replaced.
Camera thing ain't normal in any way, and the heat issue neither is.
I mean, my Boston gets warm, eventually hot after a 30-40 min 3D gaming session, but leaving it on the desk for 3-4 minutes gets it cold again. If I'm watching vids in HQ I leave it on an old AMD K7 heatsink and watch them from there, same if I'm browsing the nets or stuff like that, it doesn't even get warm.
So yes, I think you should get it replaced because it seems that it's got factory issues. Maybe something wrong in your processor?
Btw, on the new one be sure to install a task killer, with it alone the Boston on stock system should have about 75-80MB of RAM free, on Apanda 1.6 should run about 85MB, and on 2.1 around 120ish MBs.
Just to try something... Disable WiFi, GPS, Bluetooth and everything wireless-related, disable all mobile networks and force GPRS usage, then kill all applications running and check if it gets that hot. And the battery shouldn't get warm while charging, lithium batteries stay cool while they're fit. If they warm up, it means they aren't in a good state.
Good luck with that
