Do you have an LCD (flat panel) monitor? If so, then bluriness can be caused by your screen resolution set too high or too low relative to the screen's "native" resolution.
If everything appears bigger, then it sounds like the resolution is set too low. To change this, simply right-click anywhere on the desktop and click "Properties". Then click the "Settings" tab towards the right. Here you should see a slider under the title "Screen Resolution" with the current res shown.
Try increasing this in increments until you get a clearer image. Typically, a 15" LCD with use 1024x768 whereas a 17" one will use 1280x720 or higher.
Not sure why pointing the mouse would be jumpy, unless you're talking about the mouse cursor movement across the screen not being smooth. This could be a screen refresh rate issue, but I've only come across this on traditional CRT monitors (where you'll want to set the refresh rate above 70Hz for smoother navigation and reduced flicker/eye strain).