I find that if the model or subject looks about 2 inches to the side of the camera and not directly at the lens the redeye rarely shows up. Some good back-lighting and ambience light bounced off the ceiling helps as well.
As for fixing the pic, I use Paint Shop Pro 7, and the redeye removal tool is pretty handy. I can even fix my dog's eyes with the pet-eye mode
If you're really stuck, email me the pic and I'll fix it up for you, if it's not fixed already. No charge.
<a href="mailto:
[email protected]">Click here to email me</a>
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