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If it was my camera I would put my money towards a new camera. It is obvious the zoom mechanism/motor is damaged and maybe some other damaged components. You could get a quote to repair the camera but most likely they would charge you for the quote unless you go ahead for the repair.
I recently came into this camera and after a day of testing it, it's doing the same thing. My work around is this. When it's on I press the zoom function and the lens then pops out. Then after it's out, I remove the batteries while it's still on. Put the batteries back in, and power it on (lens will be popped out) and then it starts working. I only paid $7 for it at a good will. So I was taking a chance it worked somewhat. This may work for you temporarily. Not sure how long this one will last.
After the basics (cleaning the lens, replacing the batteries, etc.), try dropping the camera on a carpeted area from about 2-3 feet. It worked for my Fuji A500 and 90% of the responders on the link.Everything on the web said it would cost ~$100 to fix.I was in the process of researching new cameras to buy and had nothing to lose by dropping it on the floor.
The error may be caused by debris in the zoom mechanism preventing it from working.Dropping the camera loosens the debris and voila!
There is no easy fix, you?ll have either disassemble and get dirty, or take to an authorized repair person. This zoom error problem is usually caused due to dirt or dust in the zoom mechanism.
If you think you can handle disassembling the camera then grab a set of gentile screwdrivers and follow these instructions:
You will have to remove a few circuit boards in order to get to the zoom mechanism.