When I turn the camera on and look at the picture view, what ever I am trying to take a pic of is a blur. I tried to process the photo, and it is still a blur. Everything else seems to be in perfect working order, it just will not take a clear photo.

This is very upsetting for you, but unfortunately Fixya has no connection with Kodak. You may be able to get assistance directly from Kodak.

Remove the memory card. Reset the camera to default settings (Reset All in the Setup Menu). Don't worry, it won't erase any photos. Try taking a picture in a well-lit area at a moderate distance, with the camera resting on something to keep it still. If it still looks blurry, transfer to the computer and view it there. If that's not blurry, it's the LCD display. If it is, then it's the internal focusing system. Locate your receipt and call Polaroid for service.

"...even though the screen is clear"...?

The screen is a tiny view of the picture and you cannot see all the details of the shot that way. The only way to be sure is to zoom in on the details when viewing the photo on the screen.

basically, dont use a video camera for still photos. All it does is freeze the frame when you "take the picture". This means any photots will be blurred. I am afraid your xmas pics are likely not repearable wothout a lot of time in photoshop.
Next year, ask for a still camera!
Sorry i cant be of more help

The problem is with the CCd ..... Kindly get it replaced ...

A friend managed to find a very easy solution to this problem...the lens was dirty due to a 6 year olds sticky fingers...so I just needed to clean it.

right click on one image on the computer >> properties >>open with >> choose windows picture and fax viewer >>click ok

you are most probably looking at the pictures from the camera screen.... if you use a CF card reader and view them on the PC through internet explorer or any other software they will be fine..

You get this error when the files have been changed on the CF card by anything aside from the camera

try reformating your card and see if that helps any.

sounds like currupt memory