Olympus D560 - the lens will not extend, the camera beeps. I've changed batteries, but "new batteries" can also be dead. Suggestions?

The problem you are describing is a problem with a sensor in the lens assembly of the camera. 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 $87 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.