The camera ain't very good at all but I do know that it is really a lot slower if you have the GPS coding enabled (at least it seems that way to me). What I do is use PicSay Pro (it was about $3 from the market). It has a red-eye fixer and a ton of filters and special effects you can use to make the Droid's cruddy pictures a tad better.
To the OP, make sure you use the appropriate camera settings for your environment. Simply changing to night mode even (at night) will increase performance.
I've found that with a few tweaks of the options for my current conditions, the camera is bearable. I even have some pictures on my fridge that I printed out.
As for Pic Say (Pro optional), it is a neat program but not really all that powerful. JMHO, but then again, i've not found really any of the effects programs to be that useful.
YMMV, good luck!
Edit: I see you're a new member! welcome!
Remember though, the Droid isn't a point and shoot camera. It's still a cell phone, so it's not gonna be perfect. Enjoy your DROID!
the issue is with the flash enabled, it still meters at 1/10th which is way too slow. any cam, even on my 6 year old cell phone, with flash, meters at 1/60th...