Lens Error - Restart Camera : Lens remains in extended position.

I had the same problem with the same camera. Ended up twisting the lens by hand back and forth while powering the camera on and off till the lens pins finally realined and let it close properly. Took alot of patience and care but has worked since. Usual cause of this problem is powering camera while the lens is blocked from extending, ie in a case, laying on its face etc.

Lens errors are fairly common. Usually it's sand or grit interfering with the lens extension mechanism. Or the camera's been dropped with the lens extended. Or the camera has been powered on, but the lens had been blocked preventing its extension. Or the battery ran down with the lens extended ...

Here's some things that you can do to try to correct it. They only seem to work for less than 50% of the lens errors, but if the camera is out of warranty, they're worth a try:

http://camerarepair.blogspot.com/2007/12/fixing-lens-error-on-digital-camera.html