Pictures out of focus indoors

Hi Usually outdoor picture are good within small compact camera. They designed like that. But now your unit just have flash pcb defective. When flash function work, your picture will be good indoor. Regarding your flash unit would be brown fuse or replacement of flash unit. It is 50 and 50 chance. Your local repair shop would charge around $35 to 95 depend on what they really want to charge. Thanks and best regard!

If you have tried using the auto setting and it is still doing the blurry pictures it sounds like a problem with your camera not the settings themselves.
This blog http://www.teleplancamerarepair.com/camera-repair-blog/post/Got-Blurry-Pictures-Blurry-Image.aspx suggests a couple of the reasons might be:
"When your image appears distorted and with altered colors, in most of the cases there are two possible reasons:
- The internal shutter gets stuck , does not open completely or
- The image sensor is damaged.... "

blurry pictures often comes from the slightest movement when the pictures is snapped.
Don;t know if that is your problem or not try a photo tripod and see if that helps or check your trouble shooting area of your amnual. if you don't have the manual go to this site for any type of manual::::
http://tv.manualsonline.com/search.html?q=vr+5940&submit.x=35&submit.y=14

Have you tried changing the mode? ie portrait, closeup, macro etc?

Try pressing the shutter button half way to let it focus before you shoot. You also may want to make sure the camera is in auto mode and not set to any particular setting.

.try xperimenting with diff pc settings wen shooting outdoors...also chk the white balance settings/////focus the camera on the object u want to appear white and "ok" it....chk the iso settings for light sensitivity....if all dis dusnt wrk ...theres a prob wuid ur ccd sensor..and can be repaired only by the service centre.

It appears this problem is due a failing CCD device in many brand cameras. All the manufactures use the same source(s). I have not persued Casio as yet, but other companies are offering a recall to replace the CCD for free. I plan to use this approach with Casio. Search the web for "failing CCD in digital camera", it describes exactly what we are observing.

make sure there is no fingerprints on the lens glass

This is a CCD failure. Go to the Casio Tech support team. There has been an issue with a batch of CCD's and a recall on certain models of all makes This may be one of them

Blurry images can be caused by any or all of the following: * Distance/Focus range -- the Fun! Digital 320 has a fixed focus range of 3 - 6 feet (1.8 meters) for brightly lit indoor photography, 3 ft. (1 meter) - infinity for outdoor photography. For best results, make sure that the camera is at least 3 feet away from the subject(s) when taking pictures. * Camera/Subject movement -- This is a common cause of blurriness, especially in low-light situations (see Lighting below). Hold the camera as steadily as possible while taking a photo, or use a tripod (a tripod mount is located on the bottom of the camera). Avoid subjects that are in motion. * Insufficient lighting -- the Fun! Digital 320 is designed for taking photos outdoors or in brightly lit environments. Inadequate lighting can exaggerate camera movement and contribute to blurred, "muddied," or uncrisp images. * Lens condition -- Check the lens periodically for smudges. If necessary, wipe the lens clean with a soft, lint-free cloth. Do not use cleaning solutions or chemically treated tissues. * Enlarging images using software -- otherwise normal digital images can appear to become blurry and/or blotchy when over-enlarged in software. To see an image's "true" appearance, use the software's Zoom In or Zoom Out feature to view it at 100%.