Since I have a Mavica I can explain that the 7 series all had a quirky flash. It was actually too bright much of the time. I spent some time making a diffusion filter out of an old white plastic bag and some scotch tape. (really!)
I still have the camera and it take wonderful pictures for a 640 x 480 resolution. Flash pictures are tricky, but if you do some testing and get the optimum distance, you can get good pictures. Use the zoom and stay away from close shots. Do a bunch of test pictures and find what works best for your needs. Since everything is on a floppy and you can wipe it out, no expense.
Meanwhile, if you buy another camera, and for anyone else looking, minimum resolution that will make you happy is 1280 x 960 (something like 1.2 megapixel in the more common stats.)
The Mavica works well for macro, outdoor, a super zoom lens and easy to operate. The flash on some models was a problem. It's not just you or your camera. Some folks have gone to a seperate flash unit, using a flash slave, which works well, but defeats the idea of a compact camera with built in flash.
I hate to admit it, but many of the $200 cameras will take better flash pictures than a Mavica (which costs double that, easily) but for features, the Mavica wins the rest of the competition. Newer model Sony cameras in the Mavica line have an improved flash that does better with auto-exposure.
Do a test run and find the best distances, the Mavica works well with the small limitation.
Mavica picture below. See how the bright reflection off the bald forehead didn't ruin this shot.
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