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This is probably THE most common failure among digital cameras. There's a halfway chance of fixing it yourself, described here: http://camerarepair.blogspot.com/2007/12/fixing-lens-error-on-digital-camera.html
This may be similar to another solution posted. Try heavy duty batteries - I used ACDelco Super Alkaline, but any brand of "heavy duty" AA should work. Make sure battereis are not cold; low temp causes any battery to lose power. If fresh heavy duty batteries do not help, it may need professional service. (DO NOT try to force the lens back to retracted position - something WILL break.)
**CAUTION** This repair may permanently cause your device to stop functioning**CAUTION**
The lens mechanism works on a ball bearing track system, it's likely that it's fallen off the track. It's incredibly hard to re-set it yourself but if the camera is out of warranty you might as well try.
Having a lens repaired costs in the range of $200-300 CAD, and with pricing now on camera's you can replace it for less than the repair.
To try and re-set the lens on the track just try pushing the lens with some force as you power down the device, sometimes you can get lucky and have it fall back onto the track as the camera grabs the rest of the lens still on the track. But as I advised, only try to do this if you're out of warranty and prepared to completely destroy the camera, as there is a chance it will happen.
You could try to gently pull the lens straight. If it's leaning to the right then pull the lens to the left. Don't use brute force but it's possible to realign the lens this way. If it works you'll hear a click and the lens will look straight. Switch on and see if it retracts. I'd only use this as a last resort because you can cause additional damage if it's overdone. It has sood success rate also
When you reset the camera you should be able to hear the gears of the camera lens turning. The problem is that the lens is out of alignment so the lens can't slide back in. As the gears are turning, straighten out the lens (you might have to try forcing it in different directions if it's not obvious which way the lens is bent) and it should slide back in. You obviously want to be gentle enough to not break it, but sometimes you have to use a little bit of force based on the severity of the drop. You also might need to try a few times since the gears will only run for so long before stopping. I have fixed a few cameras this way but if the lens is bent too far out of alignment you'll have to get it profesionally fixed.
I called the store I bought it from, as well as the Olypmus toll free number. They both told me I had to mail my camera to them with a brief description of the problem. It is still under warranty, but I have to pay for shipping to get it to them. They will repair it and send it back to me. Do not try and fix the camera yourself, instead get it fixed professionally with all the proper tools once and for all.
If the lens does not extend/retract when the camera is powered on, then lens assembly is damaged.
Unfortunately, such Canon SX100 (and the SX110 too) has a very fragile lens assembly, and it's damaged very easily. Most of the times the internal gears, the plastic post guides and the motor are damaged at the same time, so the only solution is to replace the whole lens assembly.
The lens replacement requires a qualified camera repair technician, unless you want to try in repair it yourself, which requires tools (scredrivers, soldering iron, desoldering tool, magnifier glass with light, etc).