A.Nonymous, what you are seeing in your pictures is EXACTLY the problem I have...it just feels like it is slightly out of focus all the time. When I called tech support, a guy told me to turn off Auto for flash, either turn it ON or OFF, but not Auto...This was repeated above by another member. I haven't tried that much, but am curious, were these pictures with it set to AUTO?
I have had very rough experience with the camera, and it SEEMS like there is a physical problem with it. My experience is that it almost feels the range is off or something...like it focuses very clear, and then right before the picture is taken or as the picture is taken, it refocuses a tiny bit off.
In fact, to led some facts to this, a couple of times, it seemed when I looked at pictures, that the subject I was focusing on was slightly out of focus, or grainy looking, as in your picture, but if I studied the picture, I would sometimes see other items be in much more sharp focus, either in front or behind (I can't remember). So I wonder if there is a problem with SOME of these phones, which is why some people get different experiences than others?
Thoughts anyone?