From the Kodak Site: (good to see Kodak looking after their customers)

KODAK DC265 Zoom Digital Camera Firmware v1.0.3 Update, May 1999

Update Specifics
Version 1.0.3 Firmware Upgrade provides a number of performance and reliability improvements including:

DC265 Firmware version 1.0.3 is considered a minor firmware upgrade, however once you upgrade the camera firmware, you cannot revert to the previous version.

Note: In our investigation of red -> magenta color shift in DC265, we have found that recent sensor production can be seperated into two primary categories. In either case, this firmware addresses the issue.

Get your firmware update here

To see the before and after effects of the update

Read my Kodak DC265 Review