When using a flash, even if you have the camera set to red-eye reduction mode, you can have the dreaded red-eye in photos. Here are a few suggestions:
Next time, try to have your subjects look toward the camera but not directly at the lens. And don't rely solely on the flash for illumination. Whenever possible, use other light sources such as light coming through a window or door to help illuminate the subject. If you can, turn other lights on in the room.
As an aside, check your white balance settings. Selecting the right one can help prevent an orange cast on images due to the incandescent room lighting.
The software which came with your camera should have a red-eye removal tool. Or, you can download a free program like Adobe Photoshop Album Starter Edition, which has a very good red-eye removal tool. It was featured in our October 03 Digicamhelp newsletter. You can read about it here under the heading "Some of the best things in digital camera life are FREE!:"
http://www.digicamhelp.com/newsletter/digicamhelp-newsletters/digicamhelp-newsletter-10.03.htmRelated reading: Preventing and removing red-eye from digital images:
http://www.digicamhelp.com/digital-photography-tips/red-eye-removal.htmWhite balance:
http://www.digicamhelp.com/white-balance/index.htm