I also found that it was quite difficult to take sharp pictures with the T-1 in anything other than bright conditions.
I found the problem isn't really the camera, but more to do with the way that you hold it. For me, holding the camera away from my face and looking at the rear screen tended not to provide a secure hold on the camera and hence many soft images. I guess it's a matter of technique but one that I certainly never quite mastered.
If you can live with the noise, I'd set the iso higher rather than using auto. The auto iso seems to hold ISO 100 even when long exposures might induce shake.
When they're sharp, the T-1 images were excellent. Flash pictures, however, do leave a lot to be desired though.