I had this warning as well, although I think that it started after I set a cold drink too near the camera. (The condensation sensor might not respond well to cold drinks in aluminum cans...) I was also unable to get the camera to close the DV film holder while the condensation warning was displaying. JVC service technicians, both online and 1-800, were unable to suggest anything except, "send the camera to the nearest JVC service center."
I tried the QTip idea described below and had no luck. (I guess it might work on cameras that at one time DID get humid air inside the camera compartment.) The below described process involving 11-screw removal, separating the camera, and unplugging the white plug to force a hard reset of the camera removed the condensation warning. Incidentally, the film holder started closing automatically again as well. If you cannot see the solutions below this post use the blue "next" button under the posts to find the next page of posts.
The procedure looks and sounds a lot more terrifying than it actually is. I am no jeweller, engineer or handyman, (and I had to use the fiancee's tweezers instead of my clumsy fingers to get the some of the screws back in to the holes) and I did the entire procedure in ten minutes and had no trouble. Creds and Kudos to you all for finding and posting the solution; you saved me hundreds of dollars.
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