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This is probably THE single most common failure among digital cameras. There's a halfway chance of fixing it yourself, described here: http://camerarepair.blogspot.com/2007/12/fixing-lens-error-on-digital-camera.html
Hi! It sounds like your camera lens focus is stuck - could be sand or something in the focus gears - that's the weak spot of these lens. If you can't open the lens and check your lens focus gears yourself, you should contact your local Olympus service center or other camera service center. You can contact me too at firstname.lastname@example.org and I can give you a good price.