either white balance is set so something totally off. or it is a camera problem. My dad's camera had a similar problem and it was actually the sensor and/or the electronics attached to it.
Check the white balance like Alex said My sisters dP&S had a similar problem, the Auto WB was just never even in the right ball park. This when it should have been this I Painted that bike, I was rather displeased when I got those.
I agree with Alex. Sounds as if the White Balance setting is set at tungsten/incandescent (indoor light bulbs). Check it, set at 'Daylight', 'Overcast/Cloudy', or 'Auto' and shoot the squirrel again. If it's still too blue there may indeed be a sensor or CPU problem.
I'm going to guess that the white balance was accidentally set to the incandescent bulb setting, which applies a blue filter to compensate for the yellow tint of light bulbs.
I don't want to hijack the thread, but that motercycle is purple and white, not blue on blue. That was one of my first attempts at WB correction ever, so it's likely poorly done. I posted the pictures to show I have experianced the Blue haze the OP was refering to.
I think the green one is not quite there yet. it is slightly better, but still a bit off in colour aspects IMHO ... EDIT: ok, i was slow here
There's plenty of white references in that motorcycle photo that you should be able to correct it almost exactly. Yes, sounds like a WB issue for the OP.
