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I have a Kodak m863 that I just bought, and I noticed that whenever I take any picture without the flash, it looks like this:
Any ideas?

Any ideas?
It works fine when the flash is used though, that's what's puzzeling me. i think I will take it back though.The camera has a bad sensor or processor.
Take it back.
You paid between $119 and $139 and for that price you could buy a Canon.
None of the Kodak cameras are ever rated top ten by anyone.
Canon typically has 5 or 6 cameras in everyones top ten best digi-cams.
Here is a like one of the best camera review site around.
Both photographers and consumers make the ratings there. Cameras are broken down by price, megapixals, manufactures, what ever....
http://www.imaging-resource.com/DIGCAM01.HTM
Good luck.