I found the solution on another web site. You just eject the tape, and then give the camera a few sound whacks near the microphone (I tapped mine of a carpetted floor). Believe it or not this seems to work! My camera had been in "safe mode" for over a year without any success in fixing it. I tried the above method having lost all hope of ever using it again, and presto, the think came back to life! Can't say how long it will last, but at least it's out of safe mode;-)
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Do a search of this problem and you will ind that every JVC owner is having the same problem. I finally got mine "reset" by powering the unit on in payback mode while holding down the "play" button. Then, turn it back off and power it on in the camera mode while holding down the "rec" button. This seems to have reset it and I've not had anymore issues SO FAR! Good luck with it.
In the case the encoder position is not shifted
to the next point though the loading motor has
rotated in the loading direction for 4 seconds
or more. This error is defined as [E01].
1. The mechanism is locked during mode shift.
2. The mechanism is locked at the mechanism loading
end, because the encoder position is skipped during
mechanism mode shift.
3. No power is supplied to the loading MDA
http://www.fixya.com/support/t103751-in_video_mode_error_code_message_e01 resolved it for me... Apparently the JVC cameras have a little button that detects the presence of the battery, but it doesn't move very freely and you really have to slam the battery onto the camera before it notices. Cleared my E01 fault first time after having been getting more and more frustrated since it first locked up