I have the same camera! But my display is broken. :( But it still works. Try plugging in the external video cable to see if you can see the display on your TV.
Make sure the battery is fully charged. If the battery is no longer holding a charge, replace it or use the appropriate AC adapter to power the camera.
Also, remove the memory card if you are using one in you camera.
After you put a freshly charged battery in or plug in the AC adapter, press and hold the power button for at least 3 full seconds. The lens should extend fully. If it doesn't, press the playback [>] button on the back (this should make the lens retract). Then press the power button to shut the camera off. Press the power button again to power it back up and the lens should extend out as normal. You should be OK.
If not, let me know and I'll see what else I can dig up.
The last thing you can try is updating the Firmware. Below is a link to the Firmware update for this camera
. Since I don't know what OS you're using, just pick your Operating System and follow the instructions on the pages that follow the link you chose.http://www.olympusamerica.com/cpg_section/cpg_support_downloads.asp?id=1300