I dropped my camera on the carpet floor, and now all pictures taken are blurry. Still turns on, and everything works. Just LCD, eye glass shots are blurry

Is it the viewfinder (that you hold up to your eye) or the screen that's blurry?
If the viewfinder is blurry, there should be a diopter adjustment to fix it, probably right above the rubber eye cup.
If the screen is blurry, you should take some pictures and video and view them on a computer. I they are sharp on the computer but blurry on the camera screen, there may be a problem with the screen and you may need to take it in for repair.
If the pictures are blurry on the computer as well, the camera may not be focusing properly. If you can't focus manually, or the camera can't focus when auto focus is turned on, you have good light, and aren't too close to your subject, then it may need to be serviced.

Make sure you hold the camera steady .It has been my experience that if you hands arent steady your going to get a blurry pictures and also it will look blurry in the LCD window.

you have adjust diaptor wheel acoording to your eye setting. adjust your camera according to this sujetion you want get blurry picture.
you can get this diaptor wheel next to view finder.

1. The viewfinder's diopter is probably out of focus (doesn't affect Auto Focus of photos). There's a dial and a +/- symbol next to the viewfinder. Turn the dial till you can see clearly through it. Alternative reason: The glass in the viewfinder is dirty/foggy. Use camera cleaning solution (a drop) on a cotton bud to clean it.

2. Malfunction needs Canon Service Centre to take a look at.

I'm sorry to say that you'll probably be able to replace the 6MP camera with a better one for less than the cost of repair, even if attempting the repair yourself.

I'm not sure why this works for me, but I think it's worth a try:

1) First, take your SD card out of the camera.

2) Then turn on your camera and let it turn itself off.

3) Read the next step first and be ready to press the shutter release button (take a picture) right after the LCD screen turns on

4) With the camera lens pointed down towards the floor (aim down), turn on the camera. At this point the LCD screen should not be blurry anymore. Immediately press the shutter release after confirming that the LCD is not blurry. If the camera stays on and you can review the picture (most likely of your feet), then you are almost done.

5) Turn off the camera and re-insert your SD card.

5) This may not be a permanent fix, but point the camera lens downward whenever you turn on the camera. It should work normally if you do this. Mine worked normally (meaning I don't have to point it downward when I turn it on) after doing this several times. Your results may vary.

Check if everything is fine with mechanical zoom and do factory reset.

This is normal for this camera. Think about it. The CMOS chip can't see through the mirror. After the shot is taken the electronic shutter exposes the CMOS chip and makes an image just like exposing film on a film type camera. Once you get used to it you may like it better. In outdoor or bright light situations it's difficult to view the LCD screen to frame the shot anyway.

Canon wil replace the CCD sensor under warranty.

What are you looking at on the screen? Before or after the shot? The this point the taking sequence-point camera at scene look in screen blurry image - half press the release - autofocus comes into play- press all the way picture takes.Sharp picture in the taken images what are you doing?