Last year it started to bleach/overexpose all outdoor photos. Defaulting to factory settings did not work. I finally called the Olympus UK support line this morning and they told me that for that model they charge £90.77!!! to repair any kind of fault. Does not make any sense at all. That is just over £73 less than the price for when it was new.
Sort of reminds me of the story of inkjet printers with their high repair costs and overpriced ink cartridge prices.
Update April 2011
After contemplating what to do with it I threw it in the trash at our local recycle centre.