LX2 Switch on, lens extends,screen lights up, doesn't zoom,button operates 1/2 and full , then nothing. I have two batteries-both OK

Maybe it is in a strange mode...so my option will be to go to the main menu into the shoot mode...and search for camera reset or ..reset to factory ..and engage it ..this should reset it to the factory settings and remove any strange modes that might cause the problem ..*** long as it opens and extends the lens it is just a matter of setting ..The menu is not that easy to follow ..but if you have patience you will get to that feature..I think it will be in the setting ..

Have you taken the camera outdoor lately? This problem is most probably caused by a grit of sand or dust build up between the camera's base and the lens' barrel, hence it wont retract and the camera malfunctions. What you do is to hold the camera with your right hand with its lens facing the ground. Then tap the camera's base to your left palm as you push the ON button of the camera with the intention of removing that grit out of the len's barrel. You might have to do this several times.