Hi, Gail!
It is a little hard to diagnose the pbs w/o seeing the photos, but I will try.
(1) Bubbles: they are probably caused by your exhaling while snapping the photo. Solution: violate the inviolable law of scuba--"hold your breath". I.e., just before and while depressing the shutter button do not exhale.
(2) Photos blurry: a couple of potential causes--
(a) Something on the lens. Check the housing at the lens "port", and the lens' surfaces inside and outside the camera
(b) Less likely is that you are too close to everything. The Ikelite auto 35 can only focus to two feet. If you are closer, everything will be out of focus.
If the problems do not go away, it could be a camera fault. Ikelite is very good about replacing defective merchandise: return it to the store where you bought it or directly to Ikelite.
Joewr