Here's my question. Are you using a projection or LCD screen?
You shouldn't play video games on projection screens, it could possibly harm them (most big screen TVs use projection), but if it's LCD, then there's nothing wrong, it's just the way the screen is.
Of course, you said you don't notice the problem with other games, so those probably aren't it.

Also, I think some of that bluring, or "after-imaging," as my dad calls it, is done by the game itself, 'cause I've noticed it in FFX-2 when using a perfectly normal TV and all the connections are connected properly.