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Solution: Reset by removing and reinstalling film. Take the battery out and re-insert. Cause: Possibly the transport system is not compoleted previously or film door may not be reset. Once it resets it should work. Cost: Better to purchase another than repair. $40 new
I would suspect the battery is low on power, camera batteries can be checked for sufficient power at a local camera stores. Most camera stores have a meter that checks the battery capacity. You may just need a replacement battery.
The flashing E indicates the film is already rewound.
If you're concerned about it not being fully rewound, open the back in an absolutely dark room. A windowless bathroom or walkin closet will work. Block the bottom of the door with a towel or blanket and make sure there aren't ANY light sources in the room. No charger lights, smoke detectors, etc.
If the film is still hanging out, carefully handle it by the edges only & gently remove it from the camera. Try not to kink it. You can manually wind it back in the cassette by rotating the post on top.
You can download the owner's manual from Olympus at http://www.olympusamerica.com/files/Sty_Z140.pdf .