Need advice on how to fix

I would like some advice on post processing this picture. Something simple perhaps (I am not a Photoshop expert). After resizing to post it gained some soft focus or fuzziness (the original is clear)

Thanks
Scott

HOSTED PHOTO
please log in to view hosted photos in full size.

I would start with cropping the picture pretty close to the girls and using clone stamp to get rid of the mirrors in the background all together. They are very distracting and dirty. The exposure doesn't look too bad.

The picture as posted shows 667 pixels in the longest dimension and about 89 KB file size. Therefore, there is no reason for the softness as a result of JPG compression. I would say that you must have done something else in the processing before you got to the final save that left it in this state.

Too many saves in JPG format can give problems, but that is not what happened here.

Your shutter speed was 1/60 second, and the aperture was f/2.8. My guess is that it's either out of focus or there was some camera movement. I cannot tell which!

There is no good reason for such a long shutter when using flash, is there? I would think that the Poweshot S1 IS would sync at 1/125.
I can't find in that User's Manual at what speeds it will sync.

post the orginal for download here, would be much easier to tell what the problem is

Looks like a shot from a low megapixel camera. About all I'd suggest is an auto-levels or auto color correction, lightening shadows at most 18%, and some USM.