The zoom is not working properly

after changing the battery and gently push back on the lens it should automatically close if not then check around it it must be something stuck in between it

Are you sure it's the create folder icon and not the "format" icon, they're very similar? This sounds like it may be a corrupted card problem. This link provides troubleshooting tips for card problems problem.

maybe you need a new memory card if your card is full sometimes it can cause a camera not to work or shut down because of an overload of files.  If you memory card is not full most likely your camera has a defect to it. I suggest you take to a person who specializes in fixing cameras by your company. For the burry picture thing, there are different settings on a camera and I'm pretty sure that there is one to sharpen the picture images. 

When I transferred those particular pictures to my laptop for some reason they were partially deleted from the camera which gave the 'picture error' message. Deleting that picture completely got rid of the message.

Your zoom probably does not come out all the way and therefore you get some blurry shots. Had the same problem on a Panasonic camera. Solution: replace zoom motor and gears. Results=expensive. Goes beyond the value of the camera. You might want to buy another used A85 or newer digital camera.

the lens could be the problem.. probably need to send to repair before the warranty runs out

No Problem! Press MENU end go to setup, choose initialize to initialize the cam and put all the configs! finish! your problem is over.

Sorry for my english because i'm from Brazil ^^

Sounds like you might have a lens error developing. Look for error messages on the screen. A clue is abnormal performance by the lens in tracking and zooming in and out.

I had the same problem.The shutter button is faulty and is always half pressed - auto focus is operational (this is the step before actually the picture is taken. Try to clean it up with some special electrical contact spray. if this does not work - need to replace it - Not a simple job for the novice. You might need to take the camera to a service center for a spare on-off-expose button. I had an old faulty camera where I took the button from it. That solved the problem.

This suggests the zoom motor has failed. As you only purchased it 2 weeks ago - it should be replaced under warranty