Looks like camera software issue. Did you tried already to updating firmware? >There is version 1.02 available.
http://www.ricoh-imaging.co.jp/english/support/digital/20060808e.html
Its very good camera by the way :) I use it for years without big problems.
The flash icon appears in the upper left corner of display or it appears as circled flash icon? If flash is open and appears a circled icon, then there’s a malfunction contact that don’t communicate to the camera that the flash is open. Your camera needs service! Be sure the upper part of the flash is unfolded, pointing directly in front of the camera (not downward), because the sensor is just in this second folder. If the icon is not circled, press the right arrow until only the lightning symbol appears (forced flash). Try a shot! If the flash doesn’t pops, then your camera needs servicing (burned or broken lamp or other malfunctions).
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