Interestingly, I used the camera again yesterday using flash a lot and around 30% of the photos are again blurred. I am going to experiment with settings tomorrow to see if there is a reason why. However, as usual, I went to the fount of all wisdom - Steve, our moderator - and if you look at the P150 review there is a blurred flash photo!
Now I am not complaining too much since what should you expect from a camera not much bigger than a box of matches? If I want serious photos it is out with the D70, dedicated flashand heavy glass, but I am convinced that it is me and not the camera at the moment, since over 2/3rds are in perfect focus. I guess it is trial and error until I get to the bottom of it.