Image Stabilize always fails to initialize

So, I finally read the manual (well ,a little part of it) since I noticed that the IS indicator is always on and flashing red no matter the setting. According to the manual this happens becasuse the IS fails to properly initialize when powering on. This happens every time no matter the lens used or the IS settings.

I wonder if anyone else has had this problem and if there is a way to 'fix' it without shelling out $100's?

Thanks

Oops, Olympus E-P1 current firmware.

 

Hi Alan,
You mean the contacts for the lens? They do look good. Also when using adapted or manual focus lenses still no IS.

FYI I mean the camera IS - not IS in a lens.

I did recently update the camera firmware but still no go.