Although its appreciated that this posting is outdated by being from July 2008 it should be noted by anyone else who may request assistance that model numbers "MUST" always be given as advice can vary considerably dependant on model.
In general terms E-04 is normally an indication that there is a problem with data transfer between the video drum and the associated circuitry and sometimes even a heavily contaminated video head can cause this error code to appear, but should this not be applicable then it could indicate a bad connection on the ribbon cable that couples the drum to the PCB, that is excluding the possibility of the actual drum itself being at fault!
However another commonly experienced rogue (false)indication of E-04 that frequently shows on a range of "D" followed by three digit models is caused by the mechanism not fully completing an operation, like for example "loading or unloading" and when this happens mechanism position sensors do not send the appropriate signal to the logic circuits which causes it to respond in the way it would if the mechanism was jammed and shuts down the system to save damage.
A procedure that many find to be successful is to try pressing "slightly" on any part of the mechanism that moves from one position to another (loading door etc), or a more commonly used crude but highly effective method is "lightly" thumping the bottom of the camcorder with your hand, this usually having to be tried a few times before everything corrects itself, however should a person be unlucky and it does not clear the fault then unfortunately it will require an element of dismantling to enable proper fault finding to be carried out.
This "rogue" E-04 is a very common occurrence on the models referred to and so it was mentioned just in case it should apply in any subsequent complaint.
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