Any suggestions?

Ahhh...they're so cute! I love this picture...but here's the problem (with the picture not with them). It's grainy, don't you think?? The quality of the picture is just not that great. And it doesn't matter what size it is (big or small) it still looks grainy. 

I've been dealing with this issue for awhile now and I don't know what the deal is. I don't have a fancy camera, just a Canon point and shoot with an awesome zoom. It's really all I need right now. One day I dream of owning an SLR but I probably should get a new oven first since the thermostat is broken and the handle keeps falling off.

My pictures used to be fine, so I must have accidentally changed the setting or something. Or maybe I just dropped it a few too many times.  Or maybe I need to do something else??? Any suggestions??