If you want to try and keep what you have, try to reload the firmware, or try another memory card. it sounds like it's just a firmware/card read error which may be fixable.
If you want to upgrade to something else, I would suggest anything with interchangeable lenses, either a DSLR or one of the many micro 4:3 options out there. That will give you the flexibility you're looking for, with great IQ and editing possibilities.
|Valley by the light of a blue moon by cjf2|
from Down in the Valley
|Lake Erie Stone Pier by yobbyt|
from Dock or Pier
|Hong Kong by Zephyr1977|