The issue with the camera is reported to be software releated and will be resolved with an upcoming update which will release the camera's full potential. While no specifics were shared on the camera issue, users have been reporting problems with the settings which may be something Nokia is looking into.
The camera issue was also confirmed by Nokia's Damian Dinning, who stated on Twitter that Nokia was working on some improvements for the Lumia 800.
source - GSMArena