I have a Panasonic FX30. I've only had limited experience indoors with the flash but it still produced a considerable degree of red eye. Some of the Canons, especially the Powershot A series, may produce less as they tend to be somewhat larger than many makes which moves the flash a bit further from the lens.

There's no really effective alternative to increasing the distance between the flash and lens as much as is practicable. Even a standard flashgun on a hot shoe can still produce red-eye if the circumstances are right. It used to be quite common to see pro photographers with their flashes mounted on a bracket sticking out sideways from the camera to increase separation even more...