First, rotate the mode selector dial to "Auto", then check to ensure that you're not in macro mode. Also make sure that your lens is clean and there are no smudge marks.
If you've done all the above, and you're still getting blurred images, this then might be a defective CCD imager. If so, Canon should fix this for you for free, including free shipping both ways. This is regardless of your camera's warranty status.
Please check this link for more info.
Applicable cameras include:
A40, A60, A70, A75, A80, A85, A95, A300, A310, S1 IS, S60, S200, S230, S330, S400, S410, S500, SD100, SD110, IXUS V2/300/400/430/500, IXY Digital 30/30a/200a/300a/D320/400/ 450/500
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