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The problem you are describing is a problem with one of the chips in the camera that controls image processing. It seems to have failed and needs to be replaced. Following are the instructions to send your camera to Olympus for service.
Olympus will charge a flat rate repair fee for this product. The cost is $73.85 plus your local sales tax. This covers parts and labor, factory cleaning and diagnostic check, 6 month warranty and the cost of shipping the product back to you is all included in that price.
You have to get it fixed from the shop you bought it at. Because, one of the wires has becomed chemically messed up. So the best solution is that. But, remmeber when you go to the store you bought it they might ask you to pay even if you have a warranty still, tell them to fix it for free. Hope I helped.