My olympus stylus 760 lens will not retract and the screen is blue saying: D: 5f08 5e02 5f08 5e02 What should I do?

There are a few things you can try, and I will refer you to a web blog that explains steps to take to try and fix it, and here it is:
http://camerarepair.blogspot.com/2007/12/fixing-lens-error-on-digital-camera.html
They say about half the cameras can be fixed trying their suggestions. A lot of times some dust or lint is jamming the gears in the lens assembly, so blowing it out with compressed air is the first thing to try. When the lens sticks it gives error messages.
If you have no luck trying the "fixes", the camera may need servicing. Get an estimate first, since sometimes you're better off just buying a new one, since the cost of repair can be high.
Good luck, and hope this helps.