I know this is a common error, but I can now add another instance to the (rather long) list of people with this issue. The camera module isn't initialising the ENOSPC driver.
raspistill -o test.jpg
mmal: mmal_vc_component_enable: failed to enable component: ENOSPC
mmal: camera component couldn't be enabled
mmal: main: Failed to create camera component
mmal: Failed to run camera app. Please check for firmware updates
Here are the solutions that I have tried so far:
Installed the camera in the port next to the DVI socket and made sure that both ends of the ribbon cable are seated.
Enabled the camera through a terminal on the PI via "sudo raspi-config"
Updated the Raspberry PI firmware through a terminal with "sudo rpi-update"
Increased the GPU memory available from the default of 128 to 144
Used "sudo vcgencmd get_camera" to make sure that the camera is detected. (output from this command is: supported=1 detected=1)
Checked that there is no other process accessing the camera: "sudo ps aux|grep raspi" the output was: pi 1097 0.0 0.0 4372 540 pts/0 S+ 09:09 0:00 grep --color=auto raspi
Re-installed Raspberian via NOOBS from scratch, didn't change anything else, performed all of the above again and tore out the last strand of my hair as it still failed :).