The E-03 error code is only associated with tape drive problems originating in the take-up spool, this usually caused by a sticking cassette or an over slipping take up spindle caused by using tapes manufactured by other than JVC Panasonic or Fuji.
E-03 is not connected in any way with not being able to record, however should this also be coupled to not seeing anything in the viewfinder when the camcorder is in camera mode then it indicates that the image sensor (CCD) is liable to be defective, like for example the infamous "lens cap" defect, although the AX410 is not on the list of models that were fitted with potentially faulty CCD's.
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