Unfortunately the problem you describe is one of the symptoms of the notorious "lens cap" image sensor defect, and which would have qualified for a special JVC free repair as the model mentioned is on the list of models susceptible to developing the problem, "would have" being mentioned as the free repair offer was only valid up to the end of June 2009 after having been running for nearly three years, the qualification on receiving the repair
was that the person requesting it had to be the original purchaser of the device and have proof of this fact, the "original" purchase receipt being the usual item shown although credit card receipt proof can usually also be accepted.
However that said it is known that a free repair can still be obtained depending on the country a person might be in so its worth contacting JVC customer services of wherever you may be located. (Australia / New Zealand?)
More detailed info cannot be supplied as you have chosen to restrict your e-mail address.
NZ - Customer enquiries, phone: 0800 438 582
Australia - Customer enquiries (1300 728 225, or Fax 1300 728 226)