Too close or an inaccurate autofocus is definitely part of it. You can see the focal plane on some of the liverock in the background.
There's another problem too that would have shown itself if the focus were on the zoos like Gaby intended. To try to prevent blurring, the camera has the lens aperture all the way open (F/2.8). However, the depth of field get narrower the wider the aperture is. If you look at the depth of the field in the in-focus area on the rock, its only about 3/4" of an inch thick. Even if the focus were correctly on the zoos, the photo would probably have looked out of focus because of the narrow depth of field.
My suggestions? Get a tripod so you can stop down the aperture a bit more (Maybe F/4 at least?), move the camera back a bit (you can always crop later), make sure you're in the camera's "macro mode" if it has one for taking photos this close to the subject.
Most of the compact cameras can get quite close to the subject, but they usually require being put in a "macro" AF mode to do it. I'd venture a guess that was a large part of the problem here, but I didn't see the AF mode in the EXIF data so I can't say for sure.
-Dylan