I took a photo on my iPhone that is out of focus. I have downloaded it to my WinXP PC and tried cleaning it up with Picasa, but cannot find a "sharpen" option in Picasa.

Retaking the pic is not an option.

Is there any software that will correct an out-of-focus photo?

Really depends on how far out of focus you're talking here as sharpen is really only useful for slight differences.

Thanks, but what I'm asking for is the name of software that has a "sharpen" capability. Picasa does not.

There are many out there. It is more of how much you would like to spend on a program. Also depending on how blurry the picture is trying to push it too far may ruin what you started with. One program I like for general picture management is ACDSEE. It does have a sharpen feature. Its not adobe but it works well.

Photoshop is the benchmark in image manipulation. In Photoshop, there are several ways of sharpening photos - from very simple to complex. However, as mentioned above, even Photoshop won't be a big help if it doesn't have enough information (sharpness) to work with... Give it at try

Milo