Rene: Yes I am saving the picture after fixing it. It isn't with just one photo, it appears to be with all fixed photos. Did you try taking a photo, fixing red eye, then plug phone into PC and import photo and see if red eye still appears?
Sherlock: I do use Photoshop for designing media, but I chose to use the built-in feature to fix and message to family. Just easier than going to a computer, fixing, and then emailing. I only stumbled upon this scenario because once a month I will take all photos off device and place on PC, then backup to DropBox.
I have posted in another thread about having in issue with taking several photos, and the last photo would appear within the camera app lower left-hand box, but none of the pictures would appear within the camera roll. Sometimes I had to hard restart the device in order for the pictures to appear there. I am wondering if it is the device itself.
Any thoughts?