In reply to a post...`after turning {the FZ10} on, the lens refused to retract when I turned it off. In addition, it now says `System error' on the LCD screen, and I am not able to do anything at all with the camera...The lens is still extended, and I can hear a `whirr' sound when I turn it on, but I cannot see any physical movement of the lens. It has not been impacted or dropped Ray `raywes' (dpreview, Panasonic forum, 22 December 2004)...
I had this problem once with my FZ10. Turn it off take the battery out and let it sit. Then reinsert the battery and try again.Unfortunately, that did not fix the problem. You can read the rest of the thread, which seems to suggest that there is a mechanical failure of the lens. One person, in a related dpreview thread, fixed the problem by gently pushing his lens barrel (not that I would recommend you do that).