@philippovey E32 is usually related to a lens error, which could correspond to the picture quality you have. The lens maybe stuck or is actually cockeyed and of track. Try the ideas [http://camerarepair.blogspot.com/2007/12/fixing-lens-error-on-digital-camera.html|on here] first. After that you maybe looking at a replacement lens. Not quite the same model, but [https://www.youtube.com/watch?v=1fXXlpJTtiE&vl=en|this video] should get you there.
While you work on your camera, take lots of pictures. Once you are done with it, take those pictures and create a guide for iFixit. That will help the next person that has the same problem as you do. It's easy and fun to create these guides. https://ifixit.com/Guide/new The iFixit community will appreciate this.
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