Is it worthwhile to repair a digital camera (Sony DSC P150) -- lens won't retract?

Lens stuck in out position. Gets error message when turning on.

Not at all.

You are better buying a new camera. My Nikon Coolpix 5900 took a digger and the lens was stuck in the out position. I was just in Ritz Camera one day looking at other cameras and I asked about it. Right away the guy said don't even bother. He then looked it up and it would cost around $250 to fix. He said it is really expensive to fix lenses and their gears.

Obviously more than it is worth, since $250 will get you a nice brand new 6 MP Nikon or Canon camera.

You can take it in to a camera shop and ask them, but I have a feeling you will find out the same information as me.

Those are nice cameras and they still sell for $200. You can have it looked at and fixed for (much) less. I'd take it to a shop for an estimate.

I would just look into another camera, the repair will cost you more than the camera is worth. Most places charge a fee to even look at a camera.