Usually it is from a smudged lens. Clean the lens and is if that helps. If it is still out of focus check your zoom. Cameras have to types of zoom, optical and digital. Once you reach the max optical zoom the digital zoom kicks in. Digital zoom isn't that great quality because all it is doing is bring the dots in frame closer. If zoom is all the way in and still out of focus check to see what type of setting you are on. Even though you put it on auto there are cameras that have other settings while on auto that you can change the colors and other stuff like b/w, sephia, etc. If all else fails then I would have to say that your lcd is wearing down and needs to be replaced.
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picture was still distorted on computer but thanks for your help.
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