Also, incandescent light will make photos more yellow.
Fluroescent light can do wierd things to photos too.
Sunlight is best, but a flash comes in second.
My camera has a hotshoe for an external flash.
Many people make the mistake of not knowing how close they
can get to their subject and maintain focus.
Every camera is different, so you have to experiment with yours.
For example, with MY camera, if I am closer than 4 feet, I have to use the macro setting.
With the macro setting on, and zoomed all the way in, I can only be as close as 9 inches.
If I am zoomed all the way out, I can be as close as 4 inches.
If you are washing out your images, you can cover the flash.
I've used everything from tissue paper to electrical tape to tone down the flash to the right
amount. Usually the camera can compensate, but for some shots you have to tinker.
Blurry shots are generally are either because you are out of focus (duh)
OR because you moved a little bit while the camera's "shutter" was open.
The "shutter" will be open longer if there isn't enough light.
Being open longer means there is more time for you to move and blur the image.
Use the flash, but try putting something like printer paper over it.
Or cover half of it. Something so you still get the benefits of the flash, but cuts down the
amount so you aren't washing out your image.
edit: Check to see if your camera has a setting where you can manually limit the power of the flash.
It might be called an "EV" setting. Don't remember for sure.