i had this, change the setting to face tracking. this should solve this problem, it really annoyed me how a 3mp camera out beat mine :)
robbie mehr, October 2009
I've had this problem for a few weeks. Went to the shop where and bought it and was surprised to see the shop assistant take out the SIM and clean it. I was even more surprised when it focussed properly afterwards. The joy was shortlived as it reverted back to not focussing after about 10 minutes. It must have had some effect however as I've found I can now get sharp pictures by adjusting the focus manually for each shot (not ideal).
I'm sure there must be a more useful fix but this seems to work short term.
Dave, January 2009
Have you tried the obvious... like cleaning the lens and checking your settings, e.g auto focus?