I have a Sony DSC-W1. I took it to the beach. It worked perfectly but after getting home, I got that E61.
Got on the internet, did a search and found this page. I did not drop my cam, but after reading something about the motor, i decided to twist the lens couter clockwise until I heard a snap, and voila!!!
I hit power and the error was goe, lens working perfectly. Everything is A-OK!!!