I got this from ScrapbookPictures.com:

Software fixes after you have the image in your computer:
PSE4 (not the earlier versions) AUTOMATICALLY takes care of red-eye when you open your picture.

I use the sponge tool set to de-saturate and run it over the red eyes. Try it with Opacity at 50.

The ‘new’ Photoshop CS 2 has a red eye tool

Redeye Remover v.2 Author: Chip Springer
http://www.atncentral.com/download.htm (near the bottom of the page)
Demoneye Remover for your animal friends also by Chip

Happy holidays