Seems the shutter speed is a little bit fast.
Good pictures caputured at night, see:
http://chinasmile.infopop.net/0/Open...%26m%3D9341041
A setting example:
1/4s f/3.4 at 9.6mm iso100 hide exif
Full EXIF Info
Date/Time 31-Dec-2002 22:20:54
Make Olympus
Model C40Z,D40Z
Flash Used No
Focal Length 9.6 mm
Exposure Time 1/4 sec
Aperture f/3.4
ISO Equivalent 100
Exposure Bias
White Balance
Metering Mode matrix (5)
JPEG Quality (6)
Exposure Program (5)
Focus Distance
Try it and have fun!