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The problem you are describing is a problem with a sensor in the lens assembly of the camera. It seems to have failed and needs to be replaced. Following are the instructions to send your camera to Olympus for service. http://olympusamerica.com/cpg_section/cpg_servicerepair.asp
Olympus will charge a flat rate repair fee for this product if beyond the one year factory warranty or the warranty is voided. The cost is $167.85 plus your local sales tax. This covers parts and labor, factory cleaning and diagnostic check, 6 month warranty and the cost of shipping the product back to you is all included in that price.
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