I really don't know who at MS thought ClearType was a good idea, but personally I hate it. I want maximum clarity, contrast and sharpness on my desktop, so disabling ClearType is one of the first things to do when starting with a fresh Windows installation. For some strange reason you really need to dig deep to find the settings to do that. Here are the required steps, which I collected from various forums:
Disable ClearType:
Disable font smoothing:
For a more Windows XP -look, you can change UI fonts:
Now you should have a crisp and sharp desktop without any blur whatsoever (unless your monitor sucks or is set to a non-native resolution). Some other programs (like PuTTY) uses Antialiasing too to blur things up, but that can be disabled as well: Windows -> Appearance -> Font quality: Default.
In short the keywords to avoid are: ClearType, Smoothing, Antialiasing