Sounds like a stuck lens. Happens to V1253 / V1233 often. These lens can't stand dust, dirt or sand. The lens has to be taken apart and cleaned. It's not very easy, also it involves some soldering. I suggest you give it to a local repair shop (if you think it's worth it). I could offer you a repair, but I'm in Germany.
I have worked at a Kodak service center as a technician.
Tom
Kodak said they would charge me $100 to fix it. Aside that I'm short on cash, I don't think it's worth it. I don't know anything about fixing cameras, so I don't know if I should try taking it apart.
These lens units are not the easiest to repair. I suggest you contact come local repair shops and see how much they ask. If no luck, I could help you out for about $40, but you would have to send it to me.
Tom
I thank you for your offer. It seems that this is a problem with this model. Who's to say it doesn't happen again?
True. I have repaired lots of these. Well, it's up to you. Of course, it depends on how much and where do you use it and how do you store it too, but as I wrote - these lens can't stand dust, dirt etc.
I don't have the money now, but there is a Panasonic Luminix camera with similar specs, and the lens is inside the camera. That might solve the stuck lens problem.
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