Have you got a decent defrag program? and run it lately?
How about turning up your "texture resolution" higher, and turning down some other things, like water, to LOW 1x (still has shiny waves). Scenery complexity could be dropped from full right as well, try one, or max two notches to the left from your current position.
If you've not done it already, try zooming out your spot view from 1.00 to 0.80 or 0.70, that sometimes helps me.
Is it blurry like this somewhere else in the default world? Like try this in the mountains of... Switzerland or Austria for example. Show us what it looks like there.
Personally, I just think your PC is overloaded with all the extra 3d models in NZQN that it can't maintain or achieve a sharp texture on the photo real parts. I am not convinced a new gfx card will solve the problem. Personally my gfx card barely breaks a sweat with FSX, it's my CPU that can't handle the strain..
My 2 cents anyway!
PS Blurries are such a weird thing. I get sharper textures in FSX than I can get in FS2004, and FS2004 is easier on my computer. Go figure

Thanks heaps Alister and the rest of you guys, I found in places like NZQN, NZNS and NZWN - all places with godzone were where the blurries were the worst, Ill try the other things you guys have said and report back