What do you mean by open all the way?
Here is some general stuff that may help.
Try restarting the iPad: Hold down the power button until the power off slider appears. Slide it off. When the iPad finishes shutting down, hold down the power button again until the Apple logo appears. Apple recommends you restart the iPad at least once a month.
You can try and get the iPad to focus on part of the picture by tapping and holding on that area.
The iPad 2's cameras are not high quality (< 1MP), and don't work well in pore light.
Make sure the lens is clean.
If all else fails, take it to Apple. It could be a hardware failure. Your iPad should still be under hardware warranty, though if you bought it when they first came out that probably won't be true much longer.