No Flash & "Speed light is in the close position"

I had the same problem and found a solution at http://photo.net/bboard/q-and-a-fetch-msg?msg_id=0089WF

It worked for me.

There are 3 simple solutions which will not cost you anything. I used the first method for 1+ years till I discovered the 2nd and 3rd method just now, which should solve your problem easily for good (hopefully).
1. After the speedlight pops up, use your hand to touch (depress softly and let go softly) the button that normally locks the speedlight. To find this button/protrusion, look carefully in the region from which the light pops up. You will see a tiny black piece protruding out. This piece matches the cavity on the back of the speedlight. So it should be easy to find. Try pressing the button and then letting it go. If the error message doesn't go away, try pressing it once again and then check the monitor again. This method may take several tries.
2. A simpler solution is to use your hand to slow down the speedlight as it pops up. The goal is to prevent a violent shake when the speedlight unit pops open. So use your hand to let the unit slowly come to open.
3. A more permanent fix is to put something in the camera to cushion the shake as the speedlight pops open. If you look carefully how the speedlight opens, you will see that there is a plastic rod, one end of which is attached to the speedlight and the other end glides along a track/groove as the unit opens. Just put some sticky soft substance at the end of groove where the rod will come to rest when the unit opens. Put such substance there so it will "permanently" cushion the opening. One such substance you can find easily is the type of glue many magazines use to stick ads/CDs,etc. to the pages. As far as I know, you CANNOT get such glue easily in stores, but those used sticky glues in magazines are good enough and you just need a tiny bit. I happened to have bought some such glues recently from http://www.gluefast.com/catalog/product_info.php?cPath=21_27&products_id=28
for no other reason than that I have always been fascinated by such glues. You really don't need to buy these because they come in large quantities and you can just use the magazine glues I mentioned. (some call these "peel and stick glue" and some call it "fugitive glue".) Yet another possibility that should work but might not provide as much buffering/cushioning power is to cut a tiny piece of eraser that fits tightly into the end of the groove.
Hope these belated tips help you somehow.

I too had no luck with external fixes. Take off the top of the case by removing the external flash plug cover and four tiny phillips screws. Two are hidden under the Coolpix label that peels off. Be careful not to touch any of the electrical contacts inside because the flash capacitor can give you a nasty shock! Just behind the flash unit you will see a metal rod that tells a switch when the flash is in the open position. Carefully move the left (looking through the lens) end away from the plastic part it actuates. This is best done by prying with a really small screwdriver between the rod and the plastic cam. This effectively lengthens the rod and moves the cam further so it in turn pushes harder on the grey switch under the circuit board.

mine did the same thing and flicking the lever worked, BUT when it did it the camera would indicate that the strobelight was NOT open - but it was.
I eventually opened it up and exersized the contacts, but found nothing else. when I reassembled it, it worked fine.
ALAS, now it has the lens movement/startup issue. I don't know if I am going to be able to get to the motor axle to get it going again.