Try having your background much farther back (therefore out of focus). Use your flash. Zoom in a little but not too much. Make sure your camera is focusing on the fly. I can't speak for Photoshop, but most decent photo programs should be able to let you adjust the lighting and sharpness. They can't,however, focus an out of focus pic.
FYI Picasa will let you do all those things and the best part is, it's free!
Another tip is to set your camera focus on the fly without a back drop in place first then set your background where you wish before snapping the photo. This a bit more challenging with some point and shoot camera but with practice will make the process easier and clearer photos. Also, a $3 DIY photo box out of tracing paper, a shoe box and desk lamp works well too.