How can I fix outlet cover problems?

The walls are wood panelled and around each socket they cut a hole too big and there is space around the electrical outlet cover and I'm afraid that my son will stick something in there, but it also looks horrible. How would I fix this?
Also, there are several electical sockets that aren't flush with the drywall in the house making it impossible to pull anything in. How should I fix this, and what would I use?