I want to thank user cnshzj007 from the Ubuntu forums for helping me.
cnshzj007 did his on Feisty I did the same thing for Gutsy.  This seems
to fix it on both.  Now I got the blur gone and everything looks crisp
and clean.  Here is the steps cnshzj007 shared with me:

apt-get source xserver-xorg-video-intel
cd xserver-xorg-video-intel-2.0.0/
vim src/i830_lvds.c
Goto line 230 and delete (PFIT_ENABLE | VERT_AUTSCALE ....)
save and quit vim
dpkg-buildpackage -rfakeroot -uc -b -d
cd ..
dpkg -i xserver-xorg-video-intel_2.0.0-1ubuntu2_i386.deb

I'm attaching the .deb I built for those who might want to try it.

** Attachment added: "xserver-xorg-video-intel_2.0.0-1ubuntu2_i386.deb"
   
http://launchpadlibrarian.net/8133799/xserver-xorg-video-intel_2.0.0-1ubuntu2_i386.deb

-- 
Gutsy Gibbon - Poor Video - Intel 965GM
https://bugs.launchpad.net/bugs/119371
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