Finally, another person that see's what I am seeing! I posted a question up on xda forums on the 23rd of april and few had the problem, and a few did not know they had the problem because they did not know how to angle their camera properly to get this distortion. Some claimed it is because front facing camera is widescreen and it has a distorted effect on purpose.. I call bs... looks like a defect. Also when you change the front camera to 1.6 or 1 mp or even .3 MP you will not get this distortion...
What are we going to do about this? I am hoping that Samsung Will pick up on it and maybe roll out with an update.. But little know about this distortion problem.
the forum is forum.xda-developers.com/showthread.php?t=2728906 if you would like to check it out.