The dead buds should eventually drop off. They can grow in more sun (as my sister discovered - hers is south-facing and its "shade" - some 25ft tall hollies - were removed a couple years ago and it is doing okay). But you just have to make sure that it gets sufficient water and be prepared for occassional sun burn on the leaves depending on the weather.

Since yours was apparently sheared or otherwise shaped, just let it grow out of it. It may take some time since they are slow growers, but eventually it'll get there. If you prune, take the stem all the way back to a main branch rather than heading it part way.

Thanks, Jenny -
I've heard you should prune in the center of these bushes so they get good air circulation in our hot, humid climate. This bush is really dense. Do you think I should thin it out a little?
Molly

I know that people recommend thinning a number of shrubs. However the Camellia seems to be at it's best when it is moderately thick and loaded with blooms. If you have alot of dead and broken branches inside, then by all means, remove those. But I guess maybe it's more personal taste whether you want it to be more sprawly and open (there are cultivars that are naturally like that) or more dense. You have to step back and really take a look at it and then decide how you want it to look. Maybe check out some websites of mature ones and see if there's a look that is appealing.