On the computer problem the printer is probably not installed properly, try using another usb port, if that doesn't help, delete the printer from start -> printers and faxes or device. by right clicking on it and selecting delete or remove.
also uninstall related printer programs (that came with the printer) by going to start -> control panel -> uninstall programs or "add or remove programs"
then run the setup cd and plug the printer into another usb port when asked.
That should solve the problem on printing from a computer.
As for the photos not being clear, this could be caused by low ink, or dirty head, run a cleaning if that doesn't help, restore the printer to default settings and possibly use a product like magic bullet cleaning solution
http://www.specialistinks.com/unblock-printer-heads.php to get it printing like It used to.