Apparently this same problem exists on many different models. I have a JVC grd72u. I called JVC @ 800-252-5722. I selected the "Corrective Action Program" prompt from the automated attendent. I spoke to a customer service rep. They are aware of the problem and are fixing it for free, but only until 12/31/07. I suggest you call ASAP and get your name in the computer. If the problem is something besides the CCD sensor, they will call you with the estimate to repair.
JVC will repair for free some camcorder models that suffer from the LENS CAP error. The repairs are free until OCTOBER 1, 2007 only so hurry up and see if your model is listed at http://www.jvcservice.com/service/custnoticecamcorder.asp?ReqType=CCD
JVC has received reports that in certain circumstances, this model may, while in the camera mode, show no picture, a distorted picture and/or display ?LENS CAP? even though the lens cap is removed. We have identified the probable cause as a failure of the CCD image sensor. Until October 1, 2007, repairs of units exhibiting these problems as a result of a defect in the CCD image sensor will be made free of charge at JVC Factory Service Centers. Click this Repair Request link to download a Repair Request Form and find your nearest location.
Please call our Customer Care Center at (800) 858-6442 if you encounter any problems in obtaining a free repair. We apologize for any inconvenience and are appreciative of your understanding and support
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