ErikN,
I have turned it as many ways as I could, with the same result. I actually got it to work today for about ten minutes before it randomly changed to panoramic mode without cue. The manipulation of the dial feels smooth and not like it has gotten anything in there. I was hopeful that there would be something that I could do, but repair is most likely the answer.
With that in mind, as I am new to all of this, where is the best place to have this repair done? There are a few Murphy's Camera stores in my city or would it be better to send back to Fujifilm?
Thank you again!