Derek Kneisley

My bad..somehow I skipped over you mentioning how you already tried that with the macro setting.

Are you sure you don't just have the macro function enabled? That would be one reason why you're only able to focus upclose. I'm not sure what's going on with the eyepiece moving though. I just bought this camera as well. To bring it out of macro you pull the zoom lever backwards (which has to be first set at 60mm or below).