Digital cameras: Olympus C-720 ultra-zoom Focus Issue!

Olympus C-720 ultra-zoom Focus Issue!

Hello,

I have an Olympus C-720, 3MP ultra-zoom I've been using for the past year. I set it down for awhile, and when I picked it up again, noticed I can no longer make it focus correctly.

When I use the auto-focus feature, it is blurry.

When I focus manually, it looks good on the screen, but once the picture's taken, is very fuzzy.

There is too much amber in the finished pics. No, it is not on sepia.

Could the lens have been damaged in some way? is there something else I should look at?

Thanks!