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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
My daughter had the same problem with her pink A735. I tried removing the batteries, resetting the default settings and every combination of buttons. Finally I grabbed the lens as it was opening and forced it out all the way. There was about 1/8" that it was short of being fully extended. This fixed the camera for at least a while, but it sounds like there is a problem with the mechanism as it clicks every time the lens deploys and retracts now. I suspect this is a short term fix, but if you are planning on tossing the camera out it is worth a try. This camera is only about a month old.