I know there are already some fixes for this problem but I thought I would include my variation. My lens was stuck in the extended position and when powered on/off the lens would retract then re-extend half-way. I tried pushing the lens back into place with no luck. However, I could see that the lens was out of place to one side.
I removed the cover face of the camera to better expose the black housing of the lens and it was very obvious that when the lens was extended, one part was pushed flush against the inner black housing, thus preventing it from coming all the way out. Note: there is also a rubber ring that should be removed to expose the housing.
To fix this, I simply took a thin piece of paper, like a business card, and inserted the tip into the spacing between the lens and the housing starting where the larger gap was. I then moved it in a circular motion towards the area where the lens is stuck against the housing. As you get closer to this spot, the paper will seem to get stuck. I simply applied a LITTLE pressure to pull it through and you will hear the satisfying "click" we have all been dreaming about.
Hope this helps any SD users having this problem...better than spending $150 on a repair.
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