Wow - something very strange going on with this picture (and lots of your other pics). What resolution is your camera? It looks like it has been rescaled in some weird way, and has become all pixelated. Even if the camera was set to low resolution, the pics should look much better?

It wasn't the camera, it was the Olympus software I was using to re-size the photos. Since asking for advice (on here!) about it I downloaded Irfan View as someone suggested, and I think the more recent photographs are of better quality.