If the "!ZOOM ERROR" message is displayed on the digital camera, switch the camera off and on again 2 or 3 times. If this does not clear the error, take the camera to your nearest FUJIFILM Service Station for testing and repairs.
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there is a small logic circuit that controls the motor that retracts the lens and a sensor that tells it the lens is retracted, it is a lens position sensor, one of these two components is most likely defective, the thing is there are no consumer service info provided by panasonic, they will not sell you parts either, the camera is a mystery to take apart and repair without the tech manual which u can't get, so u see the delima here, u must either have this camera fixed by a panasonic repair station or see if it qualifies for a upgrade exchange program for a newer model.
Lens errors are fairly common. Usually it's sand or grit interfering with the lens extension mechanism. Or the camera's been dropped with the lens extended. Or the camera has been powered on, but the lens had been blocked preventing its extension. Or the battery ran down with the lens extended ...
Here's some things that you can do to try to correct it. They only seem to work for less than 50% of the lens errors, but if the camera is out of warranty, they're worth a try:
Lens error is usually caused by mechanical faults concerning lens assembly. The lens cannot extend or retract fully, the error is detected and lens error is returned. Sometimes this can be fixed playing with the lens during extraction or retraction to help the lens asset getting back to normal. More often the camera lens must be disassembled and re-assembled by a technician to fix the problem.
The only thing not functioning was the lens I could turn on off see menus etc but could not take a picture and the lens would not retract - My husband cleaned the battery terminals on battery & in camera -IT WORKED !!!! good as new -
It sound like a problem with the zooming mechanism (lens would not retract or extended)
Press the power button on and hold it down while extending and twisting the telescopic zoom lens. It might fix your problem.
In any case it could not make it worse.