Well, lets see. I assume you're running the game on max with FSAA on 16x? Maybe the game has FXAA on, try disabling that (I heard it might cause blurriness).
Did you tweak the ini? Try to delete the ini and start the game again. Maybe that will help.
Otherwise, maybe you have some sort of an option in the CCC that overrides the game options, by forcing no AA for example, etc.
I can definitely see the blur on the screenshot, but on both a GTS 250, and a HD5600 the game runs fine for me, with sharp textures.