[jonnythan]

The pictures are grainy because you're using ISO 800.

The higher the ISO, the grainier the pictures. That is true of all cameras. ISO 800 from a modern point and shoot digicam is only slightly better than what you're seeing.

Set your ISO to auto and keep it there unless you're getting a blurry image - then go in and force it to 400 or 800 and try again.

If you're shooting at ISO 200 and the camera needs to have a relatively long shutter time of 1/10 s, you will almost certainly get a blurry image. Setting it to ISO 800 will result in a grainier picture, but you'll be shooting at 1/40 s, which has a much better chance of not being blurry.

If you don't know what ISO means or does, you should leave it alone.