Fuji Xp camera says "Zoom

The lens error indicates that the movement is inhibited possibly by sand or grit. It also may be misaligned or an internal component has failed. Look carefully between the lens and the camera body for any sand, dirt or any damaged etc.

Try turning the camera with the lens facing down and shake to dislodge anything stuck and try removing batteries and memory card. There are a number of things you can try:
- Ensure batteries are fully charged
- Look carefully between the lens and the camera body for any sand or other dirt etc
- Try turning the camera with the lens facing down and shake to dislodge anything stuck
- Try removing batteries and memory card, wait 2 minutes and refit

If no luck then we have to try some things that could possibly result in damaging your camera so should only be tried if happy to take that risk...
a. Try thumping the camera into your other hand, by thumping into your hand you are trying to jar the mechanism loose, by using your hand you will hopefully not do it too hard or it will hurt. You may need to do this a dozen or so times in different places to work. I have found the flat of the camera bottom into the flat of your hand best..
b. If the lens is stuck in the out position then remove the batteries and try twisting the lens first one way then the other, do not apply excessive force when doing this or you can break gears, you are trying to reposition not force... Likewise if the lens looks like it is crooked you can try pushing it back into position. This has a higher chance of doing more harm than the thump so please be careful...
c. Dismantle the camera, not for the faint hearted, you need to dismantle the lens assembly into the main body of the camera.

Additionally, here are a few links to some other things to try. With newer cameras I am usually hesitant to suggest these options since they include some more extreme procedures that may cause further damage if not done correctly, but since yours is probably no longer under warranty, they may save you an expensive repair bill. An older Canon camera is used to demonstrate these procedures but, the lens structure of these compact cameras is the same so the examples do apply to this unit. These procedures are effective about 60% of the time. Click on or copy and paste the links into your browser.

* Lens Covers
* Lens FIX 1
* Lens FIX 2

If the "do it yourself" approach doesn't work out for you and you need conventional repair you can get an online estimate at the link and please see the note below: unitedcamera.com/FUJI-FINEPIX-E550 (sample)

Hope helps.