Don't chuck the camera out just yet.
The Fujifilm Finepix 401 had camera recall on a batch of cameras which fell within a range of Serial Numbers a few year back.
Fuji admitted some cameras were fitted with a batch of fault CCD chips which gave images like the ones you posted.
They fixed the cameras free of charge if your camera fell within the range of Serial Numbers.
Go to the link below and fill in the form and send your camera off to Fuji. Click on the How Can We Help? section.
http://www.fujifilm.co.uk/technical/camera_rep air/
In the fault description part of the form explain that your image displays purple and rainbow patterns.
Also mention if your camera serial number falls within the CCD Advisory Warranty Repair Recall.
You've nothing to lose so I would give it a try.
Good luck.