Windows 7 is Blurry/Fuzzy for me...

I had a blurry font problem with Win7 32 bit + ATI Rodeon HD5450 configuration when using HDMI. I uninstalled CATALYST CC and installed the latest version (7/26/2010) from AMD website. This solved the problem. Before this recent CATALYST CC update I tried everything without luck. It seems that this recent driver update may solve many problems listed here.

re: finchy1978's comment: 

<blockquote><p style="margin:0cm 0cm 0pt"><span style="font-family:"Verdana","sans-serif"; color:black; font-size:8pt"> . . . . The fix for me was simple.  I unplugged the VGA cable and then opened the nvidia Control panel (this only displayed the laptop display as expected) and then plugged the cable back in. </span></p></blockquote>

I can offer this observation in support of a tip something like finchy1978's possibly helping in some scenarios:

My PC's (Vista laptop & Win7 desktop via shared KVM to the shared monitor) sometimes boot up thinking I have a mere "analog" display rather than being able to recognize the specific model name of the monitor, as shown in the nVidia control panel.  I've found that once the display is awake I can pull the power plug on my KVM for a second and upon reconnecting it the PC's automatically see the monitor's model correctly.  (Unlike your case, though, I don't need the nVidia control panel to be opened when I power-cycle the KVM.)  Unplugging/replugging in the VGA cable might have a similar effect; I wonder if power-cycling the monitor using its sleep/power button after Windows has started might do the equivalent, too.

Sometimes doing power-cycling my KVM at the Windows log on screen (where I pick a user / enter password) avoids Windows starting up with a wrong default generic "analog monitor" resolution that scrambles my desktop icons, so I usually power-cycle the KVM whenever I turn on my PC.  (My KVM seems to need to be restarted after my Dell monitor wakes up, and the monitor wakes up as soon as either PC is powered up.)  When I get around to it, I'll eventually experiment with automating this task by using a power-saving powerstrip I have that will keep power off for the KVM until the monitor wakes up first (as detected by drawing more power than in standby mode); that might work if Windows doesn't need to be up & running first, too.

FWIW, switching to a DVI interface instead of VGA isn't really a cure, but a "workaround" that dodges the problem by using a digital interface (DVI) to avoid using the analog interface (VGA).  For people with video cards and monitors with a digital port (DVI or HDMI) & willing to upgrade their cables and KVM's (if used, as in my case), it makes sense that it might successfully dodge the problem. 

In my case the real fix was to just manually set up a custom resolution (at 60Hz rather than the 59Hz it kept switching to), and then a month or two later Windows Update offered me an updated nVidia 9800GT driver for Win 7 that also seemed to fix the problem without needing to use any custom configuration.  Since the problem I suffered only existed at 59Hz and digital interfaces don't use that parameter, it's logical one might avoid seeing the problem I saw (though not really cure it) by not using the analog interface. 

I would've preferred to go digital, but the laptop connected to the monitor via my KVM only has VGA output and can't be changed. (Besides, good DVI KVM's are more expensive, and HDMI KVM's and cables are a lot more expensive).