I wish I could figure out the green eye thing too. If it's a really good picture and I want to get rid of it, I will go into paint or another program and fix it myself. Never looks 100% real, but better than green.
She looks so cute with her ball. Phoenix has a thing for squeaky toys...they can get rather annoying at times!
As for the green eyes, I feel your pain! Red-eye doesn't work on animals unfortunatly. I think camera companys need to make a camera with a "pet" option on it. I usually go in and erase the green part and then replace it with a dark brown and it doesn't come out too bad as long as they aren't super close up.