How do I take clear pics of xmas lights so they are clear

M stands for macro.this is for extreme close so dont take photos with m displayed unless extreme close

The camera is having problems focusing. Try focusing on a bright object hold the shutter button half way down to lock the focus then frame your image and press the shutter to take the photo.
If this does not work then try manual focus.

You need to find a shop that sells spare Xmas light bulbs and try swapping out the ones not lit. take pic of your Xmas light and or one of your bulbs and bring it to retailer or search online

Sounds like camera shake. Increase ISO and shutter speed

Instead of green auto mode set to P mode and chagne the flash setting to non auto.If flash is is in auto mode flash will not fire and picture will be blurry.So your flash must fire every time (and it must not be decided by camera's auto flash mode).
I am sure this will solve your settings.
Please rate if satisfied.

try to adjust the lens in front of it...

Have you tried changing the mode? ie portrait, closeup, macro etc?

Reset you cam settings: Take the batt out for longer than 10 sec and reinsert them.

Find a link between the SCN that are dark and blurry and the ones that aren't. Is it when using flash taking pics outside or inside in certain modes etc.

Contact KODAK:
http://www.kodak.com/eknec/PageQuerier.jhtml?pq-path=14563&pq-locale=en_US&_requestid=3490

Sounds like subject movement. Try using a faster shutter speed

the camera's light sensor or metering system, for correct flash exposure is no longer working, that's why your shots is either black or white (overexposed or underexposed) the flash firing has loose its control because of the defective sensor, it now only depends on the charge current of the flash capacitor. If you'll wait longer time the charge is maximum picture result will be overexposed(white), and vice versa, less charge, dark result, have the flash assy replaced. Daylight no problem, it doesnt use the flash circuitry, thanks