The first problem is with lighting.
If you use flourescents you will get a noticeably green cast to your models, even with a flash unless you manually set your white balance.
Try using a daylight balanced light source. You can get these from photo magezines and camera supply stores.
Use a tripod
set the asa setting if possible to 100, if you can't then be sure to use the finest setting for picture resolution.
If you can set f stop set it to about 8, 11, or 13.
Bracket your picture by about 1/2 f stop on either side of the metered setting.
I would use a blue or bright green screen as my back drop. This will allow you to easily replace it with whatever background you desire using photoshop or something similar.
The problem with the small idiot proof cameras is that you do not get a lot of lattitude for picture taking. Especially when you need to be a little more sophisticated because of shadows etc.