This might sound silly, but is your lens dirty? I use my DSLR 90% of the time, but I noticed last time I pulled out my point & shoot that the pictures came out smudged looking like that. And surprise, surprise it was because there was a smudge on the lens. I felt like it was such a "DUH" moment, but it was as simple as cleaning the lens & flash real well, then I had pretty pics again.
Taking pics outside or in a light box will definitely help them to look better, too. But just make sure your lens is crystal clear first.