Whats the right way to get my Canon power shot camera S2 IS repaired?(I suspect lens problem)?

they charge $150
just to look at it
you decide
try mackcam.com

If you still have your manual around, there will be authorized repair facilities listed in there. If you're in a smaller town, you'll most likely have to either go to a bigger town or send it out for service. If you don't have the manual, you'll probably need to go on Canon's web site and find an authorized repair facility.

That being said, if it really is a lens problem, you might be better off buying a new camera as it might only cost a little more than getting it repaired.