This might sound like a crazy fix, but it worked great for me. I've had 4 of these cameras. Two stolen, one broken when I dropped it on the extended lens, and one that was accidently immersed in water. I keep buying it because I really like this little camera. What you do, is smack the bottom of the camera really hard on the heel of you hand several times. Then turn the camera on. I have to do this every now and then to get rid of the error. It seems like there is some little gizmo inside the lens that gets out of alignment. A couple good smacks gets it back in.

OMG hitting the bottom worked. GO INTERNET!!!11

Look at the camera fom a top point of view. You will likely notice that the lense is slightly crooked. With gentle pressure applied to the lower end of the lense, push. The lense will snap back into place and should work properly.

When looking at the back of the camera (with the LCD screen), turn the dial towards the top right so that the dash on the camera itself lines up with the green camera picture on the dial. That's what worked for me anyways, I hope it does for you as well.

I have the c763 too and mine has a lens error 22! does anyone know how to fix it?

ive been having the same problem with my new c763. It turns on for a couiple seconds, shows "Lens error 17" and "Lens error 27" then shuts off. the first time i turned it on, the lens came out...but when it shut off, it never depressed back in. Now its stuck out....does anyone have any fixes to this? i tried to above suggestions and nothin worked. Thanks

I also had the same problem with a recent camera purchase (same model). I found I had to set the mode to the default picture taking mode instead of the standard one it was left on out of the box (the wheel mode selector). After setting the defaults (language and date), it's worked fine since. Don't know if that will work for you too, but hopefully it does :)