Today Nokia announced that it has come up with camera update all though it looks like a major improvement the update focus on user interface improvements along with major bug fixes.
They have also enabled the red-eye removal algorithm in auto flash mode.
Previously it was only active in the red-eye reduction flash mode.
The detection and correction algorithms have also been improved as per the official Nokia Conversation Blog.
One can download the camera update from http://betalabs.nokia.com/apps/camera-update.This camera update is for the Nokia N8 which is running on Symbian Anna.