I'm not familiar with this particular camera but, assuming that the camera was not dropped, I would first verify that you have all of the settings(especially focus) in the auto mode.
This has happened to me with other cameras where I've accidentaly made a settings change. The fact that you state that all of the pictures are out of focus leads me to believe that there is a setting changed to manual or the autofocus motor has frozen.
Hope this gets you going in the right direction
I own a Panasonic D-Snap model SV-AS10. The picture quality was fine for aboout the first year after we bought it. All The pictures came out very crisp and clear. But then suddenly every picture I take comes out blurry when I download it onto my computer. I have the picture quality set on "fine" and have tried cleaning the lens but to no avail. Are there any ideas as to why this is happening?