Sony CyberShot 3.2 Mega Pixel Problem
Is the lens cover opening?
If not, (this is what was wrong with mine), get a set of cheap eyeglass screwdrivers from the "dollar store". Then commence disassembling the camera, use the smallest phillips screwdriver you can find to remove all the screws, then disconnect the tiny/red/black wire clip from the circuit board (I used a small flat-head screwdriver for this.
After you get the circuit board out of the way you can see the actual mechanisms that control that part of the camera. Remove the small lens cover motor (with red/black wire attached to it) by taking out its phillips screw. There are two sensors for the cover on a small circuit. Open/close the lens cover manually & you'll see where these sensors verify whether or not the cover is open. If the camera senses the cover isn't open, then it will give you this error & never turn on in photo or video mode. I moved the "geared lens" over to the open position & reassembled the camera & it has worked fine since then. My motor was locked up, so I left it plugged in to the circuit board, I assume that you could leave it unplugged & it would not know the difference (sensor wise).
Hope this helps someone else get their camera going again!