Nothing like resurrecting an ancient and irrelevant thread, but I have figured out the issue. I have 3 of these cameras that have this issue intermittently. I looked 2 years ago to find a solution and came across this thread, then I put those cameras in storage.
Today I pulled them out of storage and was deciding whether to just throw them in the trash. Curiosity got the best of me and I found this thread again, and then decided to take apart the camera and see what's going on, since it seems like no one else has.
Inside the ball-shaped part of the camera, just behind the lens, is an assembly that has a shutter/filter holder that pivots back and forth to change the filter. A super small motor with a gear on the end turns another gear on a spindle, that in turn makes the filter thing pivot.

When I tried to gently move the filter thing back and forth by hand, it kept getting stuck halfway, so I removed it, and then tried to spin the gear to see if it would move freely. It did not. About once per revolution, it gets stuck. At first, it seemed like the tolerances were too tight and the gear was getting stuck on the adjacent plastic motor housing. I shaved down the motor housing. No change. So I pulled out the motor and the gear, inspected them for damaged teeth under a magnifying glass. Teeth were fine. I put it together and tested and took it apart several times. I was really getting frustrated as I couldn't figure out what it was getting hung up on, and everything looked fine.
Finally, I removed the motor and the gear again and had them under the magnifying glass. I mated the gears and spun them around, tooth by tooth, until....... I suddenly noticed that after about 3/4 of a revolution, the teeth collided. The size/ratio or whatever you want to call it of the teeth don't actually match. The two gears are incompatible. Design flaw or manufacturing defect.
This explains why when you hit it, it sometimes fixes it temporarily. A percussive hit is sometimes enough to jostle those two gears into alignment again, but it's only temporary. So the people who've actually had these cameras working, it seems like pure luck as it appears these have been doomed since day 1.
These are not fixable.