Lens residue?

In my experience, it's surprising any dealer would try to fix a Canon themselves rather than the normal practice of taking a deposit and shipping it to Canon for an estimate.

Unless customer service has changed its practices, the better way for out of warranty damage is to contact Canon customer service yourself, get a repair ticket started, and mail or drive the unit in to a repair center for a free estimate. Canon generally does near complete refurbishment when it fixes, and if it's not fixable or prohibitiive, is likely to offer a pretty good discount on a replacement, possibly an S100. If you don't want anything, Canon will ship the damaged unit back for free.