The culprit to this if you have not dropped your camera is the cheap gears that sanyo put to drive the motor. Check out this website to read a blog about how to fix this issue.
http://artsybelle.blogspot.com/2011/02/sanyo-camera-all-lens-terror-fix.html
Hope it will help you to really see what the problem is. People are giving solutions saying this and that on how to solve sanyo lens error without even really knowing the problem.
I hope that helps.