As the previous contributor said red eye is a problem with compact cameras. Try and stand back further and maybe use the zoom to fill the frame with your subject rather than standing really near to them. You could also try framing them from an angle rather than a full frontal picture. If you have PhotoImpression version 3.0 which I got along with my camera you might like to try the following:
CORRECTING RED EYE USING ARCSOFT PHOTOIMPRESSION.
1. Install the Arcsoft Camera Suite software from the disk.
2. When installation is complete, click on the START button, PROGRAMS,
ARCSOFT CAMERA SUITE, PHOTOIMPRESSION 3.0
3. When the software appears onscreen, you will be in the GET PHOTO
mode, (green button top left corner). In the lower half of the screen,
click on the 'From File' button.
4. Click on the 'Browse' button and you will be able to go to wherever
you have the image stored that you want to work on. Hard disk, CD-Rom,
Zip etc.
5. Find the image, click on it and then click on the 'Open' button.
The image will now appear in PHOTOIMPRESSION in the centre of the black
screen.
6. Click on the 'Edit' button, then click on the 'Retouch' button.
The screen will change and a row of 15 buttons will appear under the
photo window. Red eye removal is the seventh button along from the left.
7. Click on this button to select it and then move up to where the
magnification tool is (near the top right corner) and click a number of
times on the plus sign to 'zoom in' on your image, keep clicking until
you reach 100%. That should be good enough unless your image is really small.
8. Above the magnification tools is a thumbnail window of your selected
image with a blue rectangular box in it. This shows you the area you
are currently seeing in the large picture.
9. Move the mouse pointer into the centre of this blue rectangular box
and click and drag it around to get the area where the red eye problem
is located.
10. When you are happy with this, move into the large image and click
drag from one corner of the red eye problem to the other corner and it
will disappear right before your very eyes.
11. Repeat steps 9 and 10 for all other problem red eye in your image
and possibly increase the magnification to get more accurate results.
12. When you are happy with the results click on the 'Save' button.
Click on Save As, a Save As dialog box appears and allows you to save
the new image in a number of formats. I would choose either the BMP,
TIF or JPEG formats, also be sure to give the file a different name to
the one it had when you loaded it in. This is to make sure you don't
overwrite the original.
Let me know how you get on.
JohnMN