Actually the landscape mode sets the Autofocus to infinity. Landscape also turns off the Autofocus frame on your electronic viewfinder. It can be quite helpful in doing quick candids in bright sunlight without having to worry if your subject is in the focus sensor or not. It is also useful for shooting through glass.
Anyway, I also have a Kodak, a DX7630, that is miserable at accurate indoor flash pictures. The exposure is extremely inconsistent. I have found that if you put it in the "P", Auto ISO, and then use flash exposure comp to compensate for the camera errors I am happier.
You might try indoor pictures without the flash, but this time use a tripod and trip the shutter with the self-timer. If your subject is not moving, you will be awarded a very sharp, natural light picture. Be sure your WB is on auto.
Kodak cameras have awesome glass, but boring color rendition, and, most annoying of all, very inconsistent exposure calculations and control.
You might try a different brand of camera.