The most probable problem you're experiencing is a lens gear issue, but it could be as simple as dirt, dust, lint, or sand inside the lens assembly. You can try to spray some compressed air into the lens assembly in hope of freeing it, or you can gently bump the side of the camera. Aside from that, make sure the battery contacts inside the camera are clean. The following web blog talks about lens issues for mainly digital cameras, but most of the suggestions will apply to your SLR:
http://camerarepair.blogspot.com/2007/12/fixing-lens-error-on-digital-camera.html
If nothing helps, run it by a local camera repair shop and get an estimate, or contact Olympus Support:
http://www.olympusamerica.com/cpg_section/cpg_support.asp?id=21
Good luck, and hope this helps.
