I'm sad because my poor camera seems to be dead. It started showing an error that said
"Error Press shutter release button again" but that doesn't seem to do anything. :P
@jonesp thanks, I did also find that when I googled. A bit iffy about opening up the camera but it is out of warranty... so I guess it would be ok... Fingers crossed that I can fix it!
Taking the bottom plate off the camera and moving the red gear looks super easy. Check out this tutorial on how to dissemble a D60 - http://www.lifepixel.com/tutorials/infrared-diy-tutorials/nikon-d60-ir and just do steps 4 and 5. You can see the red gear to slightly move in step 5. Then put it back together. I say it's worth $150 to try.
Help Please - Error Press shutter release button again
Best of luck.