I got an error E06, Please remove and re-attach the battery. The cam was indeed eating up the tape. It got worse each time you reinstalled the battery and tried to re-start the camera. It just ate a few more inches of tape each time, until the tape actually broke!
The tape up-take mechanisim had stopped bringing the tape back into the cassette after an attempted play/record operation.
I took it in for service and they claimed to have repaired the "Tape Transport/Loading Mechanisim".
I'm a service tech myself and keep the machine in an "ultra-clean" state, so this explanation makes no sence to me!
I think there is either a design or manufacturing flaw with this cam. If it destroys any more of my commercial (paid for) shots, I'll be seeking damages from JVC. This cam isn't even a year old!