"Card-Cover Open" Warning

When what is open? Always keep the battery / memory card door closed. If it is not closed correct, the camera won't work as expected. To protect the file system, when someone should pul out the memory card, while the camera is accessing the memory, it will or shut down completely, or at least protect the memory card against writing to it.
Before opening the battery / memory card cover, always make sure the camera is completely shut off. That means no light is allowed to burn or flicker. The memory card can also be write protected (SD cards) when the lock switch is down like in the picture on the 32GB card.
Before you can make any picture the switch on the card should be up like on the 64GB card on the picture.

Confirm the power-on lamp and the monitor are off and open the battery-chamber/ memory card slot cover. Be sure to turn off the camera before opening the battery-chamber/memory card slot cover.
Removing Memory Cards 1 Before removing memory cards, turn the camera off and confirm that the power-on lamp and monitor are off. 2 Open the battery-chamber/memory card slot cover and press the card in to partially eject the card. 3 The card can then be removed by hand. Do not attempt to remove the card at an angle.
Insert the memory card.
4 Slide the memory card in correctly until it clicks into place. 5 Close the battery-chamber/memory card slot cover.

Most likely some dirt, dust, or other particle is jamming the lens opening gears. You can try to spray some compressed air into the lens assembly, hopefully dislodging whatever is obstructing the lens cover. If this doesn't work, the camera will have to be serviced, which can be expensive. If the compressed air doesn't work, and you decide to have it fixed, get an estimate first. Often the cost of repair justifies going ahead and purchasing another camera.
Good luck, thanks for using FixYa, and hope this helps!

my Cannon has to be well clipped in ... scares me doing it but they can be a little tight and of course must be the right way around ... most are lug prevented from misplacement ... then of course I cannot get it out ! later on, just a guess . Mike could be corroded, grubby electrical connect as it is shut ?

The problem you are describing is a problem with a sensor that is on the card cover door. It seems to have failed and needs to be replaced. Following are the instructions to send your camera to Olympus for service.

http://olympusamerica.com/cpg_section/cpg_servicerepair.asp

Olympus will charge a flat rate repair fee for this product if beyond the one year factory warranty or the warranty is voided. The cost is $100.85 plus your local sales tax. This covers parts and labor, factory cleaning and diagnostic check, 6 month warranty and the cost of shipping the product back to you is all included in that price.

try to find the switch of cover closing, it is on on the cover from inside - small and thin, when You press it, the camera thinks it is closed.

if it doesnt work ordinary try to clean it .

The card door sensor is either damaged, failing or gone completely. You can take camera apart, (7 screws I think) take the back off. Sensor is at the back of camera near the battery door. If sensor is missing, you will see 2 spots on the electronics board where it was connected. Carefully melt solder so that those two points are connected. If sensor is still in place it's probably damaged. Carefully remove sensor using small snips or something like that, with out damaging anything around sensor. Then solder 2 points together. Good Luck

Look for the switch on the memory card door of your camera. Usually a small piece of plastic on the door closes the switch when the door is closed. Check to make sure that the plastic piece is not worn down and is making contact with the switch. You can confirm that this is the problem by powering on the camera while closing the switch manually with a toothpick. Make sure you keep your fingers clear of the extending lens while doing this. If the plastic is worn down or broken off, try attaching a small piece of scrap plastic with super glue.

Follow the steps below to troubleshoot if the lens will not open, retract, or extend. WARNING: There is a risk of hardware damage. Do not attempt to manually force the lens in or out. Doing so may damage the camera. NOTE: Because each of these steps represents a possible solution to this issue, check the camera status after completing each step. Ensure the battery is adequately charged or connect the AC power adapter (if applicable). Perform a power reset. If the camera lens is still not operating correctly after completing the troubleshooting steps suggested, service will be required. Hope this helps

Brocken sensor or catch on the cover Check the cover and see that there is a catch that goes into hole- it has probably broken off and therefore not making contact. If so thry a match stick or similar into the hole TThis will [hoepfully put the warning out even if the cover is open. If so leave it at that. If not a repair shop job- but warned big bucks just to look and parts may not be available