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This error indicate that focusing ring got stuck or jammed. What you can try to do is spray some compressed AIR into the lens to try to free up any sand or dust that may have worked its way in. If that doesn't help, you can gently bump the camera to try to free the focusing ring.
or....... You can try to turn camera ON at the table (facing it to the ceiling), don't put camera down face to the floor when opening. Else your camera need to be disassembled to get at the focusing ring at Service Center. Good luck and have a nice day. Rating the solution is highly appreciated.
Its seems lens got stuck in the barrel due to external shock caused, Try out following steps-
If motor is running but lens won't retract sometimes lens would slip off with the gear or break off a tooth in the gear when it gets dropped. Try to gently move the lens barrel around with the finger and see if it is moving, but if tooth or gear is broken lens will move once's or twice then it will stuck again.
You can gently bump the camera to try to free the focusing ring.
You can try to turn camera ON at the table (facing it to the ceiling), don't put camera down face to the floor when opening.
Else contact Olympus, your camera need to be disassembled to get at the focusing ring at Service Center .
Your camera is still under the one year Nikon warranty. Call Nikon's repair depot at 1-800-NIKON-US (1-800-645-6687) 9AM-8PM EST, Monday to Friday. They will verify your warranty and assist you in returning it for repair.
i called the company (1-888-553-4448) olympusamerica.com and they told me to send it in and they will repair it for 70.95 plus a 6months warranty because i cant find my reciept. they also said what eva is wrong with it they will be able to repair it, but if u have ur warranty u can send it to them it wont cost u anything because u have ur reciept.
I had the exact same problem in September 2007 (must be built in obsolence). I sent mine to Fuji's repair center to get repaired. Unfortunately, it becomes a decision of whether to get it repaired or buy a new one (repair cost ~$160). The kicker is now the flash will not work. I get a message/warning of camera shake. The manual says it's something to do with the shutter speed but no mention on how to correct it. So it becomes another decision of do I throw more money at it (send back for repair) or bite the bullet and buy a new camera.
Usually down to the lens block assy being faulty.Is the lens retracting and opening properly?.It usually turns out to be worn gears in the lens drive assy or the result of a fall.Either way will be expensive repair!My advise is check and see whether camera is covered by insurance for accidental knocks.,