Hi Tim and welcome to the Q&A Board,
I no longer use red-eye reduction mode. I haven't found it to be that much effective in preventing red-eye than using the standard flash mode. But the main reason is that I think the pre-flashes startle people and they end up having weird expressions on their faces. So I try to take other steps such as taking photos from a different angle.
I took several group photos during Christmas, 12 people in all, and only one person in the entire group had red-eye. Go figure.
Here are some of the known tricks to help prevent red-eye:
http://www.digicamhelp.com/preventing-red-eye-using-a-flash/An external flash is a fool-proof way to prevent it. Since the S2 doesn't have a hot shoe, a slave flash can be used.
Related reading - External flashes:http://www.digicamhelp.com/digital-camera-external-flash/index.htm