Aiya, sameish thing happened to me. i have the olympus FE230.. and i actually dropped it on the wood floor, so whenever i turn on the camera light is red, and the lcd is white. i can still take pictures though...
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Dear concern. It seems like that the lcd has been either burned out or has been hurt badly.. try checking it on another camera whether the result is same or not .. If the result is same then the manfufacturer has built-in lcd with low depth quality.
The problem stems from deleting some of the images from the PC. You need to copy all the files onto the PC, and delete all of them from the card on the camera. Then reformat the card on the camera. Then take 1 picture on the camera.
After you have just 1 new photo on the card, try copying the older files back onto the card in the same directory as the 1 new photo. This may work.
If it doesn't work, the problem may be with missing hidden thumbnail files. In that case you may not be able to get the photos to display on the camera again.
Better take your camera to near by service center to rectify the problem because as you dropped your camera internal chip might have slightly be damaged . As you reinsert the battery the internal chip is slightly charged after that it is not getting proper supply.
This sounds like CCD sensor is faulty and should be replaced . Camera works fine in playback mode generally with this problem but not in capture mode ( camera has gone 'blind'). Should be repaired free of charge if the camera is as old as you say.
that particular image corrupted through not deleting properly.
What to do?
1. Reformat the card in camera and sacrifice the images.
2. download recovery software and try to pull stuff off the card then reformat.
download recovery software from www.pcinspector.co.