For some reason my camera keeps comming up with a "REMOVE LENS CAP AND PRESS > BUTTON" error but the lens cap isn't on the camera :(

I dropped my FZ8 and had the same problem. Unfortuately, trying to push the lends back into place did not work, so I disassembled the camera using the instructables link and the comments there. Now the camera works fine thanks to everyone's help.

It makes sense to try to get the lens to work without taking the camera apart, however, it is best not to use too much force because you could damage the cogs that move the lens. I tried that first and used quite a bit of pressure and the cogs weren't damaged at all.

In my case, however, I don't think there is anyway I could have gotten the lens unjammed without taking the camera apart.

Http://www.instructables.com/id/Repair-Stuck-Lens-on-Panasonic-FZ5/

We had the same problem with our FZ8. My wife had dropped it and it must've knocked the lens barrel sensor out of whack. Based on what was posted by atocha, I was able to fix it.

With the lens barrel out, I gently pushed the barrel up, down, left, right and put a little pressure in. Somehow, the barrel worked itself into the right position! The camera works perfectly know. Its worth a shot to save $$$. Be gentle!! Good luck.

It sounds like the lens barrel is out out alignment. Possible the barrel was stuck while it was extended. There is a sensor on the lens barrel asemmbly that must be in the correct position after the camera is turned off. If this doesn't happen then you will get this message..at least this is what I have experienced in my repairs on this camera 

THANK YOU SO MUCH!! It worked. Only thing is sometimes it still does it not work...but it does go back to working for the most part. I slipped on the ice and that was how I broke it. You made my day!