i would suggest using Picasa 2 from google...its a real small download, free software, and really awesome
it has red eye reduction just by clicking a button, n it has dis cool feautre called im feeling lucky, it really improves ur pics a lot byt changin many of its settings most of the time, n u can revert bak 2 original also
2 remove red eye usin fotoshop: *graphicssoft.about.com/cs/photoshop/ht/apsredeye.htm