I had this very same problem, and I managed to fix it. In my case, this happened because a gear inside the lens housing was knocked loose. To gain access to it, you'll have to disassemble the camera and remove the lens assembly(the black cylinder that takes up half the camera). Unscrew everything, being careful not to damage any of the fragile ribbon cables. When you finally open it, the gear you are verifying is a tiny white gear that is under a small, silvery cylinder. This is the same silvery cylinder that sits aside the entire lens assembly. Make sure it is firmly locking teeth with the nearby black gear. If it isn't, carefully jiggle it while pushing it down, and it will lock teeth with it. Also, be careful to note where the spring is, as it must be present for the camera to work.
Best of Luck,
Thomas Skubicki
If the lens is stuck out then you will find it is usually one of a few reasons.
1. Check the batteries. (obvious I know).
2. The camera has been dropped or knocked.
3. The camera has grit or dirt in the lens mechanism.
Providing the batteries are ok then 2 and 3 usually mean a professional repair. The lenses tend not to be something that the average home user can remove and take apart. The cost of repair also might be more than the camera value so you will need to find a good repair shop near you and get a quote.
My ST-500 camera's lens is not returning and the service center asked me to change the gear lens and it would cost me more than half the price. I am under warranty too but still the authorized service center is asking me to pay and change the gear lens.
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