Upside: The repair is covered under warrantee. Apparently the retractable lens that doesn't retract is a common problem with these smaller cameras. And, as luck would have it, we HAD purchased additional repair coverage back in December!! We didn't remember and we didn't have any paperwork, but Best Buys had it in their system. Yeah for Best Buys!!
So the camera is on its way to the camera-hospital to get fixed!!!
Downside: It should take 3 weeks before it comes back.
I sure do miss it.