I just copied the full example shown in this link http://docs.phonegap.com/en/1.7.0/cordova_camera_camera.md.html#Camera and create one application and test it on my Samsung Galaxy SCL (Android). As soon as I capture the image with the cam, the application closes.
Are you using DestinationType for DATA_URL or FILE_URI? It is recommended that you use FILE_URI and then use the File object to access the file. DATA_URL returns a Base64 encoded image that may cause memory errors.