Nikkor AF 18-135 lens won't retract fully
The Zoom ring maybe stuck on something, or not aligned properly
Try sending it to PhotoTech Repair Service in NYC. They are Nikon authorized, and can do the repair under warranty if you still have it. Also if you join they're facebook page, they will give you a 10% discount.
Here is the facebook page link, it has everything you need to send it in.
http://www.facebook.com/pages/New-York-NY/PhotoTech-Repair-Service-Inc/102527215194
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