My cannon SD1000 died on me while taking pics of my new born baby. It kept saying "Lens Error, Restart the Camera". In the hospital, I could not concentrate or do any trial n error on the camera.
Back home now... I did the following and it worked
Removed the battery, recharged the same. Inserted the charged batter and very gently moved lens sideways couple of times. The lens immediately went in and I restarted the camera. Everything is back to normal.
I have clicked some more photos and it is working fine.
Not sure if this will work for everyone....no harm in sharing some tip