I'd dump this guy in a heartbeat if not faster!! I hope all turns out well in the end, but this whole story smells a bit fishy. I don't like the way this guy is doing business in this specific issue.
L, M1, M2... you can choose which ever you want. These settings will not change if you switch from Auto to P or to Landscape or to Shutter priority. They are 2 completely seperate functions. Resolution settings determine how many pixels are actually captured on the sensor and how much the image is compressed. Auto, P, Tv, Landscape, Portriate, etc... these setting effect the shutter speed, aperture and ISO which determine how much light is captured onto the sensor. Think of the resolution as your brain, it tells how much of the incoming light is going to be stored in your heads memory and think of the setting on the little dial on your camera (Auto, P, Tv, etc..) as your eye lids and iris, allowing the appropriate amount light to get to your brain.
As for the reddish hue he is talking about, I'm guessing (which someone else already guessed as well) that its something to do with his equipment. His customer service is very poor. (if as some else mentioned, Kelly I believe) If it is the equipment he should have been upfront about it, maybe he would have lost this one transaction, but its better than losing all the future times you would go back. I wouldn't go back based on what you've posted thus far. Even if the pictures come back beautiful as he say's, I wouldn't go back and I'd tell other people I know that go there not to use him either.
Oh, I won't be back and it's a shame because I've never had any problem with him before. He just keeps saying resolution and his software will fix it. Even IF it's actually resolution(although, I know the reddish problem is not resolution) why would I have that problem if he's only giving me 4x6's. It's not as if I'm getting posters made. I used the 12xoptical zoom ALOT at AKl, so if he said 'grainy' I would kind of understand. Redness aside.... Is there even software to fix pictures that don't have enough resolution? He just kept saying incorrect resolution setting and his software would fix it. I don't understand...the pictures looked SOOO good in the display that I couldn't wait to get them printed.