I had the same problem with my fujifil m603. I opened it but could not repair it. So I was angry and started twisting the lens. Wola it started working. But this problem keep on popping up. My advice twist the lens and keep on pressing the zoom button on ur camera untill zoom error disapears. I have done this so many times I think my camera is permanantly broken but hey I had it for 6 years. Let me know how it went.
Amal
Amal, June 2008