Hi, The LCD screen on my camera shows blurry, distorted images and takes distorted pictures.

These cameras use a focusing ring, that is controlled by electro-magnets and signals from the onboard processor. If any dust, sand, lint, etc., gets inside the lens assembly, it can jam the ring, not allowing it to focus. Your best shot to remedy this (short of repair) is to get a can of compressed air and spray it into the front of the lens assembly, trying to loosen the ring and allow it to work. You can buy the compressed air at Walmart for around $4, and it's also handy for cleaning out computer keyboards and the vents on laptops. If you don't have any success with this, repair will be necessary. Make sure you get an estimate first, since the whole camera will have to be disassembled to solicit the repair. Often, the cost of repair is more than that of a new camera. Here's a web blog about the problem of stuck lens, and you can also try their other hints, in the hope of freeing the focus ring up.
http://camerarepair.blogspot.com/2007/12/fixing-lens-error-on-digital-camera.html
The blog is about lens errors and problems with the lens assembly, so it also applies to the problem you're having. Good luck, and hope this helps!