The problem you describe is one of the symptoms of the classic "lens cap" image sensor defect, and which may possibly "qualify" for a special JVC free repair as the model mentioned is on the list of models susceptible to developing the problem. However the "free" repair offer was only valid up to the end of June 2009 and the qualification on obtaining the repair was that the person requesting it has to be the original purchaser of the device and have proof of this fact, so the "original" purchase receipt was the usual item shown although a credit card receipt proof can usually also be accepted. Although the offer expired at the end of June its not completely unknown for JVC to "sometimes" carry out a goodwill repair, even without proof of purchase! but it all depends on who deals with the request as this qualification was made to stop dealers buying up defective camcorders on the cheap, getting them repaired free, then selling then on at a profit. You should contact JVC customer services nearest to wherever you may be located as they will give you the up to date info applicable to the US, or maybe Canada, as the "U" suffix can sometimes apply to both countries.