Ok, these cammeras seem to have a lot of problems. My suggestion is to seriously look on ebay or ecost.com and buy a new cammera to fit your cammera housing but if you are dead set on repairing yours then i would say open up the cammera body and there is a card on the front you need to replace. I would try the large card on the front of the cammera next to the lense first by the vauge description you gave. this seems to control all the processing. you may want to try a couple of simple things first like using a different memory card or replacing the batter inside the cammera. I don't know how a bad battery would effect the cammera operation but it is possible it could cause problems. If this doesn't help then take the cammera appart. REMOVE THE BATTERIES! REMOVE THE MEMORY CARD! THERE IS A CAPACITOR INSIDE THAT WILL SHOCK YOU, DON'T TOUCH THE CIRUIT CARD ON THE FRONT WITH OUT DISCHARGING THIS CAPACITOR!!!!!!!!!!
remove the screw around the outside except for the battery compartment and the retainer screws holding in the screw tripod mount. They can stay in. next lift the bottom of the back cover up and hinge it slightly forward. not too far. then carefully pull the top of the back cover away being careful not to shear off the top plastic snap in pieces or hinge it forward and break them! do not pull it off quickly because there is a ribbon cable holding in the back. Back off the ribbon cable retainer clip and remove the ribbon cable from the socket. This should remove the backing. Next remove the newly exposed screws and remove the ribbon cabble for the shutter switch the same way. then pull off the front cover carefully. let it hang by the micophone wires and what not and you will see the board on the front next to the lense with the capacitor that shocked you... Didn't I tell you to watch out for that! now tell your wife you were shocked incase your heart stops... next discharge the capacitor the rest of the way with a piece of wire. it should be the solder joints with the big re and black wires next to the lense. Then un screw the board and unplug the wires for it. remove the board and look for serial numbers. Look the numbers up on the internet or on ebay and try to find someone who is selling it for cheap. This is nearly impossible to repair and must be replaced. if you cant find a replacement, call olympus and ask for a replacement board. they will then tell you they dont sell them so lie and tell them you are a repair shop or alternately ask to speak to their repair department or a certified repair shop. call them and ask if they have the part and usually they are more helpful. Ask how much it costs and then realize that it is almost the same ammount as buying a new cammera. get mad and look some more on ebay for the part. once you find it... order it, install it, test it, and email me back and let me know if it worked at Lucient_lost@msn.com
Also be carefull not to shear off the switch on the botom for the memory card door. It is very fragile. if you do there is a fix for it already on this web sight. I wrote that one too. If you have any more trouble with it email me. if something is unclear, email me and I'll call you.